1. An asset that is generally not expected to be converted to cash or consumed within one year or the operating cycle is:
Building.
Accounts receivable.
Inventory.
Supplies.
2. Notes payable that are due in two years are:
Current liabilities.
Long-term intangible assets.
Long-term liabilities.
Long-term investments.
3. Long-term assets generally include:
Inventory held for sale.
Prepaid rent.
Accounts receivable.
Land held for a possible future plant site.
4. Disclosure notes would not include:
Depreciation methods used and estimated useful life.
Definition of cash equivalents.
Details of pension plans.
Data to adjust the financial statements so that they are not misleading.
5. The principal concern with accounting for related-party transactions is:
The size of the transactions.
Differences between economic substance and legal form.
The absence of legally binding contracts.
The lack of accurate data to record transactions.