Understanding Balance Sheets

6 questions

1. 1. How are Held-for-trading (HTF) securities reported in balance sheet?
   Current asset, at fair valueCurrent asset, at historical costLong-term asset, at fair value
2. 2. Which of the following is not an example of a current asset?
   Trade receivablesInventoriesPatent
3. 3. Which of the following items is not generally classified as a current liability?
   Revenue received in advanceAccounts payableBonds payable
4. 4. Which of the following is the correct treatment for the cost of goodwill purchased as part of an acquisition of an on-going business?
   Never amortised, but there shall be an annual impairment reviewWritten off immediately after the acquisitionAmortised over twenty years
5. 5. How are trading securities and available-for sale securities reported on the balance sheet?
   Purchase price, Fair valueFair value, Purchase priceFair value, Fair value
6. 6. Which of the following transactions will result in an increase in total assets of a business?
   Purchases of office supplies on accountPurchase of land for cashBoth A and B