51. Assets are often classified into current assets, long-term investments, plant assets, and intangible assets.
52. Intangible assets are assets that are long-term, have physical form, and are used to produce or sell products and services.
53. Current liabilities include accounts receivable, unearned revenues, and salaries payable.
54. Cash and office supplies are both classified as current assets.
55. Plant assets are usually listed in order from most liquid to least liquid.
56. The current ratio is used to help assess a company's ability to pay its debts in the near future.
57. If a company has current assets of $15,000 and current liabilities of $9,500, its current ratio is 1.6
58. Flo’s Flowers’ current ratio is 1.3. The industry average for the current ratio is 1.2. This indicates that Flo’s can cover its short term liabilities with its short term assets.
59. A benefit of using a work sheet is that it aids in the preparation of the financial statements.
60. The work sheet is a required report made available to external decision makers.