Part A

i) define current assets with out using the word "asset.|" (2 Marks)

ii) Define liability without using the word "liability". (2 Marks)

Part B

Assets

current assets:

cash in banks $11,800

Due from customers & employees $9,700

Less reserve for uncollectibles $600

Bond sinking fund $15,000

Inventories $22,320

Total current assets $58,300

Propertuy, plant & equipment:

land and building $41,000

Furniture and fixtures $17,500

used property held for sale $4,000

Total $62,500

Less accumulated depreciation $19,000

total property and equipment $43,500

Deferred charges:

Unamortized bond discount $1,200

Supplies on hand $2,000

Goodwill $14,000

Total $17,200

Other assets:

Treasury stock(at cost) $5,500

Total assets $124,500

Equites

Liabilities:

Accured bond interest expense $900

Accounts & notes payable $21,000

Bonds payable $30,000

Accumulated other comprehensive income $10,000

Total liabilities $61,900

Net Worth:

Common shares $40,000

Retained earnings $7,600

Reserve for bond sinking fund $15,000

Total net worth $62,600

Total equities $124,500

List 10 deficiencies in the above statement. ( 2 marks for each deficiency and 1 FOR CORRECT STATEMENT HEADING)