Questions and Answers
What are trademarks classified as?
Notes payable (current) are classified as which type of liability?
What type of revenue is interest revenue classified as?
N/A
Income taxes payable are categorized under which classification?
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Debt investments (long-term) are classified as which asset?
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Unearned sales revenue is categorized as what?
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Inventory is classified under which type of assets?
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Accumulated depreciation is associated with which category?
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Land is classified as which type of asset?
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What type of equity is common stock classified as?
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What classification does advertising expense fall under?
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Mortgage payable (due in 3 years) is classified under which liabilities?
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Accounts payable are categorized as what?
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Accounts receivable are classified under which type of asset?
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Accumulated depreciation is classified under which category?
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Buildings are classified in which category?
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What is cash classified as?
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Goodwill is categorized as which type of asset?
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Patents are classified under which category?
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Supplies are classified as what type of asset?
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Stock investments (to be sold in 7 months) are classified as which type of asset?
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Interest payable is categorized under which liabilities?
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Equipment is classified under which category?
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Prepaid rent is classified as which type of asset?
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Prepaid advertising is categorized as what type of asset?
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Salaries and wages payable are classified as which type of liability?
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Retained earnings are classified under which category?
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Land (held for future use) is classified as which type of investment?
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Bonds payable are classified under which category?
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Stock investments are classified as which type of investment?
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Investment in real estate is classified as which type of investment?
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Debt investments are classified as which type of asset?
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Study Notes
Intangible Assets
- Trademarks represent brand identity and are classified as intangible assets.
- Goodwill reflects the value of a business's reputation and customer relationships, also considered an intangible asset.
- Patents grant exclusive rights to inventions and innovations, categorized under intangible assets.
Current Assets
- Inventory consists of goods available for sale, classified as current assets.
- Accounts Receivable indicates amounts owed by customers for goods/services delivered, classified under current assets.
- Cash is a direct reflection of liquid assets available, categorized as current assets.
- Supplies represent materials on hand for business operations, classified as current assets.
- Stock investments intended for resale within a short-term (e.g., 7 months) are classified as current assets.
- Prepaid Rent and Prepaid Advertising indicate advance payments for services, both classified as current assets.
Current Liabilities
- Notes Payable (current) indicates short-term borrowing obligations and is categorized as a current liability.
- Income Taxes Payable is the amount of tax obligations due within the fiscal year, classified under current liabilities.
- Unearned Sales Revenue represents payments received for goods/services not yet delivered, categorized as current liabilities.
- Accounts Payable indicates amounts owed to suppliers, classified as current liabilities.
- Interest Payable reflects accrued interest that is due soon, classified as current liabilities.
- Salaries and Wages Payable represents compensation owed to employees, classified as current liabilities.
Long-term Investments
- Debt Investments (long-term) involve securities held for extended periods, classified under long-term investments.
- Land held for future use is categorized as a long-term investment due to its potential for appreciation.
- Stock Investments refer to shares held for long-term gains, categorized as long-term investments.
- Investment in Real Estate indicates property acquired for appreciation or rental income, classified as long-term investments.
Property, Plant, and Equipment
- Accumulated Depreciation reflects the total depreciation expense for fixed assets like buildings and equipment, categorized under Property, Plant, and Equipment.
- Buildings are considered physical structures owned by a business, classified as Property, Plant, and Equipment.
- Equipment includes machinery and tools used in operations, categorized under Property, Plant, and Equipment.
- Land is considered a fixed asset with no depreciation applied, classified under Property, Plant, and Equipment.
Stockholders' Equity
- Common Stock represents ownership shares issued to shareholders, classified as stockholders' equity.
- Retained Earnings indicates the accumulated profits reinvested in the business rather than distributed to shareholders, categorized under stockholders' equity.
Long-term Liabilities
- Mortgage Payable due in 3 years indicates long-term debt secured by real estate, classified as a long-term liability.
- Bonds Payable represent amounts owed for bond issuances, categorized as long-term liabilities.
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Description
This quiz covers key concepts related to balance sheet classifications, including various types of assets, liabilities, and revenues. Each card provides a term along with its definition, helping to reinforce your understanding of financial terminology. Ideal for students in accounting or business courses.
