Fixed Assets and Inventory Accounting

What is a definition of an asset?

1)      Which financial statement lists company’s assets?

• Income statement

• Cash flow statement

• Balance sheet

• Chart of accounts

What’s the difference between tangible and intangible asset?

Select only tangible assets.

• Copyright

• Equipment

• Machinery

• Goodwill

• Stock

What is a definition of fixed assets = non-current assets?

Select only fixed assets.

• Vehicles

• AR

• Building

• Land

• Treasury bills

The cost of an item of PPE consists of:

• Cost of site preparation

• Cost of opening a new facility

• Administrative overheads

• Professional fees

• Dismantling costs

What does depreciation process track in the business?

Where in the financial statement does depreciations show up?

• Balance sheet (BS)

• Cash flow statement (CFs)

• Statement of change in equity

• Profit & Loss Statement (P&L)

What is the most common and the simplest depreciation method?