Yamaska just purchased a restaurant from a company that went out of business.They are going to sell off all the furniture, tables and chairs that came with it, because they are going to redecorate it with a new theme.How would the building and the furniture be reported on the balance sheet?
$\begin{array}{ll}
&\text { Building } & \text { Furniture } \
A.&\text { Current asset } & \text { Current asset } \
B.&\text { Current asset } & \text { Non-current asset } \
C.&\text { Non-current asset } & \text { Current asset } \
D.&\text { Non-current asset } & \text { Non-current asset }
\end{array}$
A)Option A
B)Option B
C)Option C
D)Option D

Question

Yamaska just purchased a restaurant from a company that went out of business.They are going to sell off all the furniture, tables and chairs that came with it, because they are going to redecorate it with a new theme.How would the building and the furniture be reported on the balance sheet? 
$\begin{array}{ll}
&\text { Building } & \text { Furniture } \
A.&\text { Current asset } & \text { Current asset } \
B.&\text { Current asset } & \text { Non-current asset } \
C.&\text { Non-current asset } & \text { Current asset } \
D.&\text { Non-current asset } & \text { Non-current asset }
\end{array}$
A)Option A
B)Option B
C)Option C
D)Option D

Quizplus · Accepted Answer

The building is a non-current asset because it is a long-term resource owned by the company, not expected to be converted into cash within a year. The furniture, intended to be sold off quickly, is considered a current asset because it is expected to be converted into cash within the operating cycle or one year.

Yamaska Just Purchased a Restaurant from a Company That Went