AGBU 2389 test 2 Bullion Questions With Complete Solutions

AGBU 2389 test 2 Bullion Questions With
Complete Solutions

Understand |the |purpose |and |use |of |a |balance |sheet

A |systematic |organization |of |everything |OWNED |and |OWED |by |a |business |or |individual |at |any |
given |point |in |time
(Chapter |4)

Definition |of |assets

Assets |is |anything |of |valued |owned
(Chapter |4)

What |is |2 |reason |why |assets |have |value?

1. |Assets |can |be |sold |to |generate |cash |(current |assets)
2. |Used |to |produce |other |good |that |in |turn |can |be |sold |for |cash |in |the |future.
(Chapter |4)

Definition |of |Current |Assets

Assets |that |can |be |used |up, |sold, |or |converted |to |cash |in |the |next |year |as |a |normal |part |of |
business |activities.
(Chapter |4)

Is |Current |assets |short |term |or |long |term?

Short |term
(Chapter |4)

Examples |of |Current |assets

Cash, |Checking |& |Savings |Account |Balances, |Stocks |& |Bonds, |Cattle, |Crops |Sold, |Grain, |Feeder |
Livestock, |Ag |Chemicals |and |Supplies
(Chapter |4)

Definition |of |Non-current |Assets

An |asset |that |is |going |to |be |held |for |12 |months |or |more
(Chapter |4)

, Is |non-current |assets |short |term |or |long |term?

Long |term
(Chapter |4)

Examples |of |Non-current |assets

Machinery, |equipment, |breeding |livestock, |buildings, |land
(Chapter |4)

What |are |the |3 |Categories |on |balance |sheet

1. |Assets
2. |Liabilities
3. |Owner |equity
(Chapter |4)

Definition |of |liabilities

Any |debt |or |financial |obligation
(Chapter |4)

Definition |of |current |liabilites

Are |financial |obligations |that |will |become |due |and |payable |within |one |year |from |the |date |of |
the |balance |sheet
(Chapter |4)

Is |current |liabilites |short |term |or |long |term?

Short |term
(Chapter |4)

Examples |of |current |liabilities

1. |Accounts |payable |at |farm |supply |stores |for |goods |& |services |received |but |not |paid |for |yet
2. |Principal |on |short-term |loans
3. |Accrued |interest |on |all |loans
(Chapter |4)

Definition |of |Non-current |liabilities

All |obligations |that |do |not |have |to |be |paid |in |full |within |the |next |year
(Chapter |4)

Is |non-current |liabilities |short |term |or |long |term?