Classify Each of the Following Balance Sheet Items as a Current

question 93

Essay

Classify each of the following balance sheet items as a current asset, non-current asset, current liability, or non-current liability.
A) Dividends declared but not yet paid to shareholders
B) Wages owing to employees
C) A loan owing to a shareholder that will be repaid in two years
D) Land purchased for expansion by a retailer
E) An amount owing from a customer due in 15 months

• A) Dividends declared but not yet paid to shareholders
• B) Wages owing to employees
• C) A loan owing to a shareholder that will be repaid in two years
• D) Land purchased for expansion by a retailer
• E) An amount owing from a customer due in 15 months

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Definitions:

Predetermined Overhead Rate

A predetermined overhead rate is an estimated charge per unit of activity used to allocate manufacturing overhead costs to products or job orders, based on anticipated costs and activity levels.

Direct Material

Raw materials that can be directly attributable to the production of finished goods in a manufacturing process.

Job J904

A specific project or job, designated by the identifier J904, within a company's job costing system.

Predetermined Overhead Rate

An estimated rate used to allocate manufacturing overhead costs to individual units of production, based on a specific activity base.