Module 2

Question 1

Current (short-term) Assets
6 types

Answer 1

Cash
Cash equivalents
Short-term investments
Accounts receivable, net
Inventories
Prepaid expenses

Question 2

Cash equivalents

Answer 2

Investments with an original maturity of 90 days or fewer

Question 3

Short-term investments

Answer 3

Marketable securities the company expects to well within the year

Question 4

Accounts Receivable, Net

Answer 4

Amounts due from customers arising from the sales on credit

Question 5

Inventories

Answer 5

Goods purchased or produced for sale to customers

Question 6

Prepaid expenses

Answer 6

Costs paid in advance for rent, insurance, advertising and other services

Question 7

Long-term Assets
3 types

Answer 7

Property, plant and equipment (PPE)
Long-term investments
Intangible and other assets

Question 8

PPE

Answer 8

Property, plant and equipment, net
land, buildings, and equipment

Question 9

Long-term investments

Answer 9

Investments the company does not intend to sell within the year

Question 10

Intangible and other assets

Answer 10

Assets without physical substance such patents, trademarks, franchise rights, and goodwill

Question 11

Characteristics of a liability (non-owners claims)

Answer 11

1. It is an obligation for the company
2. It must arise from a past transaction or event

Question 12

Stockholder Equity

Answer 12

Direct via purchase of stock
Indirect via retained earnings