Astoria is using a software application to prepare the balance sheet. Which of the following should be included in the fixed assets category?
A) Land
B) Copyrights
C) Contingency funds
D) Goodwill

Question

Quizplus · Accepted Answer

Fixed assets are assets that have a long useful life and are not intended for sale in the normal course of business operations. Land is a long-term asset and is not expected to be sold in the normal course of business operations, therefore it should be included in the fixed assets category. Copyrights, contingency funds, and goodwill, on the other hand, are not fixed assets. Copyrights are intangible assets, contingency funds are cash reserves, and goodwill is a type of intangible asset that represents the value of a business over and above its identifiable assets and liabilities.

Astoria Is Using a Software Application to Prepare the Balance