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.