Question 1: The following items are considered as non-current assets, except:

a. prepaid insurance.

b. land

c. goodwill.

d. buildings.

Question 2: All assets must be accounted for on acquisition at cost. Which of the following item is not part of the cost?

a.

Purchase price

b.

Installation costs

c.

GST payable

d.

Transportation costs

Question 3: Depreciation expense is classified as a(n):

a.

expense in the income statement.

b.

equity in the balance sheet.

c.

liability in the balance sheet.

d.

contra asset in the balance sheet.