Balance Sheet (Concept-Checking)

Which of the following best describes a Balance Sheet?

• Report of income and expenses over a year

• Statement of financial position at a specific date

• Record of only liabilities

Which of the following is a current asset?

• Goodwill

• Accounts Receivable

• Land

• Trademarks

Which of the following is considered an intangible asset?

• Inventory

• Goodwill

• Buildings

• Equipment

Which of the following is not a fixed asset?

• Buildings

• Land

• Equipment

• Raw materials

Which of the following appears under current liabilities?

• Salaries payable

• Goodwill

• Retained earnings

List two purposes of preparing a balance sheet.

Differentiate between current assets and non-current assets, with examples.

Explain the difference between accounts payable and accrued liabilities, with one example of each.

State two examples of intangible assets and explain why they are important for businesses.

A hotel receives SAR 50,000 as advance payment for bookings next month. Under which balance sheet category should this amount be recorded?