Folder:
115 CFA
File:
115.040.04.02 Financial Analysis - Reading 22 - 2. Measurement Bases of Assets and Liabilities

2. Measurement Bases of Assets and Liabilities

e. describe different types of assets and liabilities and the measurement bases of each;

What are the five major items found in the current assets section of the balance sheet?
1. Cash
2. Marketable securities
3. Accounts receivable
4. Inventories
5. Pre-paid expenses

When is goodwill included on a balance sheet?
Goodwill is recorded in the accounts only if it is purchased by acquiring another business at a price higher than the fair market value of its net identifiable assets.


Source:
  • CFA