• LO3–2, LO3–3
The following are the typical classifications used in a balance sheet:
a. Current assets
b. Investments and funds
c. Property, plant, and equipment
d. Intangible assets
e. Other assets
f. Current liabilities
g. Long-term liabilities
h. Paid-in-capital
i.
Required:
For each of the following balance sheet items, use the letters above to indicate the appropriate classification category. If the item is a contra account, place a minus sign before the chosen letter.
1. _____ Equipment
2. _____ Accounts payable
3. _____ Allowance for uncollectible accounts
4. _____ Land, held for investment
5. _____ Note payable, due in 5 years
6. _____ Deferred rent revenue for the next 12 months
7. _____ Note payable, due in 6 months
8. _____ Income less dividends, accumulated
9. _____ Investment in XYZ Corp., long-term
10. _____ Inventories
11. _____ Patent
12. _____ Land, in use
13. _____ Accrued liabilities
14. _____ Prepaid rent for the next 9 months
15. _____ Common stock
16. _____ Building, in use
17. _____ Cash
18. _____ Taxes payable
Want to see the full answer?
Check out a sample textbook solutionChapter 3 Solutions
INTERMEDIATE ACCT.CUSTOM W/CONNECT
- Question: What is the formula for calculating the current ratio? a. Current Assets / Current Liabilitiesb. Current Liabilities / Current Assetsc. Total Assets / Total Liabilitiesd. Total Liabilities / Total Assetsarrow_forwardThe following are the typical classifications used in a statement of financial position : a. Current assets b. Investments and funds c. Property, plant, and equipment d. Investment property e. Intangible assets f. Current liabilities g. Long-term liabilities h. Issued capital i. Retained earnings Required : For each of the following statements of financial position items. use the letters above to indicate the appropriate classification category. If the item is a contra account, place a minus before the chosen letter 1. …. .…….Prepaid insurance 2. ……….. Note payable due in three months 3. ………. Unearned rent revenue 4. ……….. Income less dividends, accumulated 5. ………. Building, in usearrow_forwardQuestion 12 Which of the following is a usefulness of the statement of financial position? OA. The use of judgments and estimates. OB. Omitted items. OC. Valuation of items at historical cost. OD. Evaluate capital structure. larrow_forward
- The following are the typical classifications used in a statement of financial position : a. Current assets b. Investments and funds c. Property, plant, and equipment d. Investment property e. Intangible assets f. Current liabilities g. Long-term liabilities h. Issued capital i. Retained earnings Required : For each of the following statements of financial position items. use the letters above to indicate the appropriate classification category. If the item is a contra account, place a minus before the chosen letter 1. …. .…….Prepaid insurance 2. ……….. Note payable due in three monthsarrow_forwardThe following are the typical classifications used in a statement of financial position : a. Current assets b. Investments and funds c. Property, plant, and equipment d. Investment property e. Intangible assets f. Current liabilities g. Long-term liabilities h. Issued capital i. Retained earnings Required : For each of the following statements of financial position items. use the letters above to indicate the appropriate classification category. If the item is a contra account, place a minus before the chosen letter 3. ………. Unearned rent revenue 4. ……….. Income less dividends, accumulated 5. ………. Building, in usearrow_forwardQ. Distinguish between financial assets and real assets for each of the following characteristics. i. Divisibility ii. Marketability iii. Holding period iv. Information availabilityarrow_forward
- 14- Liquidity to tradable assets is a function of: a. Domestic Market b. Commodity Market c. Financial market d. International Marketarrow_forwardKnowledge Check 01 Which of the following describes how working capital is computed? Multiple Choice Current assets Current liabilities Current liabilities Current assets Current assets-Current liabilities Current assets + Noncurrent liabilitiesarrow_forwardPFRS 9, Financial Instruments deals with the measurement and classification of which of the following items? * Impairment of assets Hedge accounting Financial assets Financial liabilitiesarrow_forward
- Which of the following describes how assets are listed onthe balance sheet?a. In alphabetical order.b. In order of magnitude, lowest value to highestvalue.c. In the order they will be used up or turned intocash.d. From least current to most currentarrow_forwardDistinguishing between current and non-current items on the balance sheet and presenting a subtotal for current assets and liabilities is referred to as: B . an unclassifi ed balance sheetarrow_forwardCommon categories of a classified balance sheet include Current Assets, Long-Term Investments, Plant Assets, Intangible Assets Current LiabilitiesLong-Term Liabilities, and EquityFor each of the following items, Identify the balance sheet category where the item typically would best appearIf an item does not appear on the balance sheetIndicate that instead.arrow_forward
- Cornerstones of Financial AccountingAccountingISBN:9781337690881Author:Jay Rich, Jeff JonesPublisher:Cengage Learning