Answer to Question #228712 in Accounting for Another you

Question

Determine if the following accounts are Current Assets(CA), Non-Current Assets(NCA), Current Liabilities(CL), or Non-Current Liabilities(NCL). Write your answer on the space provided.

______1. Franchise

______2. Loans Payable

______3. Accounts Payable

______4. Note Receivable (due in 18 mos.)

______5. Cash

______6. Prepaid Expense

______7. Accounts Receivable

______8. Land

______9. Merchandise Inventory

______10. Unearned Income

______11. Copyright

______12. Office Equipment

______13. Machinery

______14. Prepaid Insurance

______15. Building

______16. Patent

______17. Accrued Salaries Expense

______18. Service Vehicle

______19. Wages Payable

______20. Notes Payable (due in 24 mos.)

Answer 1

Answer:

1. Non-current Asset: Franchise (Intangible asset)

2. Non-current Asset: Loans paycheck.

3. Current Liability: Accounts Payable.

4. Non-current Asset: Notes Receivable (Due in 18 months).

5. Current Asset: Cash.

6. Current Asset: Prepaid Expense (Until the service is rendered to the business).

7. Current Asset: Account Receivable.

8. Non-current Asset: Land.

9. Current Asset: Merchandize Inventory.

10. Current Asset: Unearned Income.

11. Non-current Asset: Copyright (Intangible asset).

12. Non-current Asset: Office equipment.

13. Non-current Asset: Machinery.

14. Current Asset: Prepaid Insurance ( Until the service is rendered or consumed).

15. Non-current Asset: Building.

16.Non-current Asset: Patent (Intangible asset).

17. Current Liability: Accused Salary Expense (Until they are met by the business).

18. Non-current Asset: Service Vehicle.

19. Current Liabilities: Waves Payable.

20: Non-current Liabilities: Notes Payable.

Notes:

i. Non-currents Assets(NCAs) are resources that belong to (owned by) to the business entity to be used in achieving its objective(s) and are expected to last for a long time.

ii. Current Assets (CLs); are resources that belong to the business and used to finance daily transactions in the business and can be easily converted into cash within a year or less.

iii. Non-current Liabilities (NCLs); are long term financial obligations of the business and are expected to be served, met or repaid over a longer period exceeding 2 years.

iv. Current Liabilities (CLs): are financial obligations that the business is expected to meet or pay for them over a relatively short period of time (usually less than a year) using its current assets.