Multiple Choice: Balance Sheet Classification Select the correct answer for each of the following:

1. Which of the following elements normally is not included in working capital?

a. Accounts receivable.

b. Bonds payable.

c. Taxes payable.

d. Inventory.

2. Which of the following is not included in property, plant, and equipment?

a. Delivery trucks.

b. Blast furnaces.

c. Prepaid insurance.

d. General headquarters.

3, Which of the following is a noncurrent asset?

a. Land.

b. Inventory.

c. Prepaid insurance.

d. All of the above.

4. Which of the following is an intangible asset?

a. Trademarks.

b. Copyrights.

c. Patents.

d. All of the above.

5, Property, plant, and equipment:

a. Is always considered to be a current asset.

b. Consists primarily of intangible assets.

c. Is deducted from current liabilities in computing working capital.

d. Is reported net of accumulated depreciation by many companies.