A company purchases packaging materials as well as a new

Reference no: EM13571218

A company purchases packaging materials, as well as a new packing and storage warehouse where these materials will be used. Should the materials and warehouse be classified as current or fixed assets?

1.Both are current assets because some or all of their value will be used within one year.
2.They are both fixed assets because they are used in production, which is an ongoing operation for this business.
3.The packing materials are current assets because they will be used within one year; the warehouse is a fixed asset because it has a life longer than one year.
4.The materials are current assets because of their short life; the warehouse is a liability because it is not completely paid for.

Reference no: EM13571218

Questions Cloud

4 years later you refinance the remaaining balance at a 4 : you take out a 250000 30-year loan with monthly payments at a 6.5 interest rate. 4 years later you refinance the

A firms operating income ebit was 400 million their : a firms operating income ebit was 400 million their depreciation expense was 40 million and their increase in net

Bob lawson is the president of his company his cfo is mark : bob lawson is the president of his company his cfo is mark ziegler. like many entrepreneurs bob is more concerned about

Acme products has a bond outstanding with 8 years remaining : acme products has a bond outstanding with 8 years remaining to maturity and a coupon rate of 5 paid semiannually. if

A company purchases packaging materials as well as a new : a company purchases packaging materials as well as a new packing and storage warehouse where these materials will be

Ibx has a bond issue outstanding that is callable in three : ibx has a bond issue outstanding that is callable in three years at a 5 percent call premium. the bond pays a 10

You and bob are enrolled together in a course on financial : you and bob are enrolled together in a course on financial management. you missed the class last friday and bob copied

What is the problem that reflect in either men or women in : my prof give us link contains ad ..httpwww.youtube.comwatch?vf-wy6gtc5vsshe wants me to do research about this issuei

Hawkins trucking is financing a new truck with a loan of : hawkins trucking is financing a new truck with a loan of 1-000 to be repaid in 5 annual end-of-year installments of

User Account

All Pages