Classification In The Balance Sheet

Question 1

Current asset

Answer 1

a resource controlled by the entity (as a result of a past event), from which a future economic bene t is expected for in 12 months or less

Question 2

Non current asset

Answer 2

a resource controlled by the entity (as a result of a past event), from which a future economic bene t is expected for more than
12 months

Question 3

Current liability

Answer 3

a present obligation of the entity (arising from past events), the settlement of which is expected to result in an out ow of economic bene ts in the next 12 months

Question 4

Non current liability

Answer 4

a present obligation of the entity (arising from past events), the settlement of which is expected to result in an out ow of economic bene ts sometime after the next 12 months

Question 5

Classification

Answer 5

grouping together items that have some common characteristic

Question 6

Balance sheet

Answer 6

an accounting report that details a rm’s nancial position at a particular point in time by reporting its assets, liabilities and owner’s equity