FABM 1 Final Exam Set A.

Are assets that can be realized (collected, sold, used up) one year after year-end date. Examples include Cash, Accounts Receivable, Merchandise Inventory, Prepaid Expense, etc.

• Current Assets

• Non-current Assets

• Tangible Assets

• Intangible Assets

Are assets that cannot be realized (collected, sold, used up) one year after year-end date. Examples include Property, Plant and Equipment (equipment, furniture, building, land), long term investments,

• Current Assets

• Non-current Assets

• Tangible Assets

• Intangible Assets

Are non-physical assets such as patents and trademarks.

• Current Assets

• Non-current Assets

• Tangible Assets

• Intangible Assets

Are physical assets such as cash, supplies, and furniture and fixtures.

• Current Assets

• Non-current Assets

• Tangible Assets

• Intangible Assets

It is money on hand, or in banks, and other items considered as medium of exchange in business transaction.

• Cash

• Note Receivable

• Prepaid Expense

• Accrued Income

Are expenses paid in advance. They are assets at the time of payment and become expenses through the passage of time.

• Cash

• Note Receivable

• Prepaid Expense

• Accrued Income

It is revenue earned but not yet collected

• Cash

• Note Receivable

• Prepaid Expense

• Accrued Income

Are amounts due, or payable to, suppliers for goods purchased on account or for services received on account.

• Note Payable

• Account Payable

• Accrued Expenses

• Unearned Income

Are expenses that are incurred but not yet paid (examples: salaries payable, taxes payable).

• Note Payable

• Account Payable

• Accrued Expenses

• Unearned Income

It is cash collected in advance; the liability is the services to be performed or goods to be delivered in the future.

• Note Payable

• Account Payable

• Accrued Expenses

• Unearned Income