Assets

Question 1

Cash

Answer 1

Currency (coins, paper money) and any medium of exchange (e.g., cash deposited at a bank that can be accessed quickly).

Question 2

Notes Receivable

Answer 2

Written promise to receive a definite sum of cash from another party at fixed future date(s).

Question 3

Accounts Receivable

Answer 3

Amounts due from customers for goods sold, services performed, etc.

Question 4

Inventory

Answer 4

The goods (or stock, or merchandise) a business has on hand in order to resell. The amount is the cost value.

Question 5

Office Supplies

Answer 5

Prepaid expense: Pens, paper, stationery, etc., purchased but not yet used.

Question 6

Prepaid Insurance

Answer 6

Prepaid expense: Insurance paid in advance, not yet used.

Question 7

Prepaid Rent

Answer 7

Prepaid expense: Rent paid in advance, not yet used.

Question 8

Land

Answer 8

Cost of real property, exclusive of the cost of any constructed assets on the property.

Question 9

Equipment

Answer 9

Machines, tools, etc., needed for a particular activity of the business.

Question 10

Accumulated Depreciation

Answer 10

Accumulation of depreciation expenses. This is an asset account that contras the associated asset (e.g., Equipment).

Question 11

Copyright

Answer 11

Intangible asset that has an exclusive right to print, publish, perform, or record a literary, artistic, or musical work.

Question 12

Goodwill

Answer 12

Intangible asset stating the excess of the amount paid for a business over and above the fair market value of the business’s net assets.

Question 13

Trademark

Answer 13

Intangible asset recorded at cost for a registered symbol, emblem, or name used to identify a product or service.