Part A
i) define current assets without using the word "asset."		(2 Marks)
ii) Define liability without using the word "liability".		(2 Marks)
Part B 21 marks
Assets
current assets:
cash in banks		$ 11,800
Due from customers & employees	$ 9,700
Less reserve for uncollectible	$ 600
Bond sinking fund		$ 15,000
Inventories		$ 22,320
Total current assets		$ 58,300
Property, 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
Equity
Liabilities:
Accrued 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)