The statement of financial position

Exercise 2.3 - Current and Non-current Assets

This exercise should be completed after reading pages 33-37 of Chapter 2.

Fixit Limited is a tyre and exhaust replacement centre. Most customers pay in cash but some businesses are allowed 30 days credit (30 days in which to pay).

Instructions:

  1. Look at the table below, or open the spreadsheet
  2. Study the table and the answer already completed
  3. Determine whether the resources stated represent assets of the business and enter Yes or No in the Business Asset column
  4. Then decide whether the assets will be classified as current or non-current assets: again, enter Yes or No in the second column
  5. Finally, in the third column, decide which category of current or non-current assets each listed item falls into out of the following list:
    1. Intangible Assets
    2. Property, Plant, and Equipment
    3. Inventory
    4. Trade and Other Receivables
    5. Cash and Cash Equivalents
    6. Not recognized as an asset
  6. For the items which you have decided are not assets of the business, explain why they do not meet the asset recognition criteria in the Asset Category column and compare your answer with the answer given

Exercise 2.3 - Current and Non-current Assets

If you are viewing this workbook in the latest version of Internet Explorer, Firefox, or Chrome you should be able to work in an Excel spreadsheet embedded below using Microsoft Web Apps. Please note: If you are unable to see the embedded spreadsheet please use the link above to open the spreadsheet in a new window.

Used with permission from Microsoft.

 

Have you completed the table? See below for the correct answers.