For each of the following items, identify whether they are a tangible or intangible asset. In addition, if the asset is long-lived, identify whether it is depreciated, amortized, or depleted. If the asset is not a long-lived asset, identify it as a current asset.

Tangible/ Depreciated/

Intangible /Current Amortized/Depleted

1) Drilling rights __________________ __________________

2) Equipment __________________ __________________

3) Inventory __________________ __________________

4) Blueprints __________________ __________________

5) Land __________________ __________________

6) Automobiles __________________ __________________

7) FCC Licenses __________________ __________________

8) Goodwill __________________ __________________

9) Commercial Paper __________________ __________________

10) Domain names __________________ __________________

11) Notes receivable __________________ __________________

12) Buy-sell agreements __________________ __________________

13) Timber __________________ __________________

14) Royalty Agreements __________________ __________________

15) Mineral rights __________________ __________________

16) 1) A liability is created

A) when merchandise is purchased with cash.

B) when owners invest in a company.

C) when merchandise is sold on account.

D) when salary expense is recognized before employees are paid.

E) when rent is paid in advance.

17) Liabilities that fall due more than 1 year beyond the balance sheet date are

A) long-term liabilities.

B) delinquent liabilities.

C) current liabilities.

D) risky liabilities.

E) contingent liabilities.

18) Examples of a current liability include all of the following except:

A) Prepaid rent.

B) Accrued income taxes payable.

C) Accrued wages payable.

D) Current portion of long-term debt.

E) Accounts payable.

19) A written promise to repay a loan principal plus interest at a specific future date is

A) a promissory note.

B) a line of credit.

C) commercial paper.

D) a product warranty.

E) a returnable deposit.

20) A debt contract issued by prominent companies that allow the companies to borrow directly from investors is

A) a promissory note.

B) a line of credit.

C) commercial paper.

D) product warranties.

E) returnable deposits.