Module 2 Quiz of Understanding Financial Statements Company Position

Inventory is listed as a current asset on the balance sheet, which means inventory should be used up within a year. True or false?

Which account would NOT be listed on the balance sheet for a bakery?

What the company is in the business to sell determines whether an item can be presented in raw materials inventory or finished goods inventory. True or false?

Which is not one of the three categories of inventory that a manufacturing company would include on the balance sheet?

A prepaid expense, such as prepaid rent, is an example of what?

Accounts receivable can be described as

The amount the company is owed by customers that it estimates it will NOT receive is called what?

What kind of asset is not expected to be converted to cash or used up within a year?

Which is a non-current asset?

Which is NOT a fixed asset at a running shoe store?

What can be thought of as the estimated amount of property, plant, and equipment that the company has used up since it was first acquired?

What is the unidentifiable asset that coincides with purchasing a company for more than the value of the assets acquired?

Intangible assets cannot be listed on the balance sheet. True or false?

Say you just bought a company from a friend. If you bought the company’s assets for $70,000, and the total value of the assets was actually $50,000, what would the goodwill be reported as on the balance sheet?

In general, accounting regimes allow companies to record intangible assets that they have created themselves.

Which of the following is classified as a non-current asset on the balance sheet?

Inventory can be under current or non-current assets depending on what the company chooses to list it as. True or false?

Which of the following are intangible assets?

Goodwill, patents, and copyrights are examples of current assets. True or false?