Class Notes (1,100,000)
CA (650,000)
UTSC (30,000)
MGA (300)
MGAB01H3 (100)

Statement Presentation of Capital Assets

Financial Accounting
Course Code
Liang Chen

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Statement Presentation of Capital Assets
¾ Property, plant, and equipment, natural resources, and intangible assets may be listed
separately under the heading Capital assets. Natural resources are commonly grouped
under the Property, plant, and equipment. Goodwill should be presented separately in
the balance sheet, and other intangible can be grouped as a one line item on the
balance sheet.
Using the Information in the Financial Statements
¾ Net sales / Average total assets = asset turnover
¾ Net income / Average total assets = return on assets (%)
Capital Assets
Capital assets are long-lived assets acquired for use in the operation of a business. Capital assets
can be tangible or intangible.
Tangible Capital Assets
Tangible capital assets include: property, plant, equipment, and natural resources. A key
distinction between natural resources and the rest are that natural resources tend to physically
lose substance, or deplete, as they are used.
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