Trucks for Stuff is a one year old company that provides statewide moving services to customers. Describe the types of current, fixed and other assets Trucks for Stuff would have.
What will be an ideal response?
Current Assets
Cash: The business should have cash on hand for day-to-day business operations. This money should be easily accessible. A marketable security that could be sold and liquidated quickly might also be expected.
Accounts Receivable: Trucks for Stuff probably has accounts receivable set-up for the customer ease. This option is for people who do not have the cash at the time of the sale, but have been given credit terms to pay the business for its services usually on a 30 day period.
Inventory: Trucks for Stuff may not have inventory since they are providing a service to the customers instead of selling a product.
Fixed Assets
Machinery/Equipment: The company would have trucks as well as office equipment.
Building: It could also have a building to store the trucks not being used.
Land: The company could own the location of the business.
Other Assets
Long-term investments: These investments would be possible but may not expected for a startup company. The company would have trucks as well as office equipment.
Patents/Copyrights: These assets would not be expected.
Goodwill: If the company has been successful in its first year, this asset would be possible.
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