The Current Asset Section of a Balance Sheet Includes

question 44

Multiple Choice

The current asset section of a balance sheet includes:

• A) All future income taxes resulting from inter-period income tax allocation.
• B) Goodwill arising in a business combination accounted for as a purchase.
• C) Rent receivable.
• D) A receivable from a customer not collectible for over one year.

---

Definitions:

Normal Balance

The side (debit or credit) of an account that is usually increased. For example, assets have a normal debit balance, while liabilities have a normal credit balance.

Financial Statement

Documents that provide an overview of a company's financial condition, including balance sheet, income statement, and cash flow statement.

Permanent/Temporary

Refers to the classification of accounts or differences; permanent accounts are ongoing and not closed at the end of the accounting period, whereas temporary accounts are closed and reset.

Normal Balance

The side (debit or credit) of an account that is typically increased.