Exam 5 Flashcards
What are the three main types of Non-current assets?
- Long-Term Investments
- Property, Plant, and Equipment
- Intangible Assets
What are the two categories of Long-Term Investments?
- Held to maturity – Bonds
- Available for Sale – Equity
What types of items are included in Property, Plant, and Equipment?
- Land
- Buildings
- Machinery
- Computers
- Furniture
- Vehicles
What is the Contra Account associated with Property, Plant, and Equipment?
Accumulated Depreciation
What are Intangible Assets?
Assets that lack physical substance
List examples of Intangible Assets.
- Patents
- Copyrights
- Trademarks
- Franchises
- Licenses
- Goodwill
What are the types of Intangible Assets?
- Limited-life intangibles
- Unlimited-life intangibles
- Goodwill
Fill in the blank: Long-Term Investments can be classified as _______.
Held to maturity – Bonds
Available for Sale – Equity
True or False: Goodwill is considered a limited-life intangible asset.
False
What is a liability?
A liability is an obligation of the entity to make a payment or provide a service to another entity, based on a past transaction or event.
What is a current liability?
A current liability is a liability that is required to be paid within one year.
What are common current liabilities?
Common current liabilities include:
- Accounts payable
- Wages payable
- Interest payable
- Taxes payable
- Advances from customers
- Current portion of long-term debt
- Estimated liabilities for warranties
What are noncurrent or long-term liabilities?
Noncurrent or long-term liabilities are liabilities that are expected to be paid more than a year from today.
What are common long-term liabilities?
Common long-term liabilities include:
- Notes payable
- Pension liabilities
- Bonds payable
- Obligations under capital leases
