Answers

PST 311L PASS ASS 2

When assets are recorded on the balance sheet of a business, they are classified as being either short-term or long-term assets. A short-term asset is expected to be consumed within one year, while long-term assets are to be consumed in more than one year. Some intangible assets are not recorded on the balance sheet, unless they have been purchased or acquired. For example, a taxi license can be recognized as an intangible asset, because it was purchased. In addition, the value of a customer list that is part of an acquired business can be recorded as an asset. However, the value of an internally-generated customer list cannot be recorded as an asset.