Name : Salma Krafessi
1. Which one of the following items is reported as a current asset on a classified balance sheet?
a. Trucks
b. Accounts receivable
c. Land
d. Common stock
2. The following information is given for Camino Company:
Cash
Land
Plant & Equipment
$ 50,000
75,000
150,000
Inventory
Accumulated Depreciation
Accounts Payable
$ 45,000
40,000
60,000
What are the company’s current assets?
a. $220,000
b. $155,000
c. $130,000
d. $ 95,000
3. Which of the following accounts are normally reported as noncurrent liabilities on a classified
balance sheet?
a. Notes payable due in 5 years and bonds payable
b. Interest payable and mortgage payable
c. Income taxes payable and salaries payable
d. Capital stock and accounts payable
4. Which one of the following is not a major category for long-term assets?
a. Receivables
b. Property, plant, and equipment
c. Intangibles
d. Goodwill
5. Which of the following would not be considered to be an intangible asset?
a. Franchises
b. Copyrights
c. Investments
d. Goodwill
6. Which of the following statements is true concerning intangible assets?
a. Intangible assets have no economic substance.
b. Intangible assets lack physical existence.
c. Intangible assets are listed in the stockholders’ equity section of the balance sheet.
d. Intangible assets appear in the current assets section of the balance sheet.
7. How are assets which are expected to be realized in cash, sold, or consumed within the normal
operating cycle of a business or within one year (if the operating cycle is shorter than one year)
reported on a classified balance sheet?
a. Property, plant, and equipment
b. Current assets
c. Intangible assets
d. Current liabilities
8. One significant difference between a classified and a non-classified balance sheet is the distinction
between which of the following items?
a. Assets and liabilities
b. Current and noncurrent items
c. Liabilities and owners’ equity
d. Resources invested by the owners and amounts borrowed from creditors