The current assets section of a balance sheet should never include
A) a receivable from a customer not collectible for over one year.
B) the premium paid on short-term bond investment.
C) goodwill arising from the purchase of a going business.
D) customers' accounts with credit balances.

Question

Quizplus · Accepted Answer

Goodwill arising from the purchase of a going business should not be included in the current assets section of a balance sheet as it is an intangible asset that represents the excess of the purchase price over the fair value of the acquired assets and liabilities. Goodwill is considered a long-term asset and should be reported separately on the balance sheet.

The Current Assets Section of a Balance Sheet Should Never