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Questions and Answers
What does Accounts Payable represent?
What does Accounts Payable represent?
What does Accounts Receivable classify as?
What does Accounts Receivable classify as?
What type of asset is Accrued Interest Receivable on Long-term Investments?
What type of asset is Accrued Interest Receivable on Long-term Investments?
What are Accrued Interest Payable classified as?
What are Accrued Interest Payable classified as?
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What does Accumulated Depreciation - Building represent?
What does Accumulated Depreciation - Building represent?
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What kind of account is Cash?
What kind of account is Cash?
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What does Allowance for Bad Debts refer to?
What does Allowance for Bad Debts refer to?
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What category is Current Maturities of Bonds Payable classified under?
What category is Current Maturities of Bonds Payable classified under?
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What type of account is Deferred Rental Income?
What type of account is Deferred Rental Income?
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What does RE stand for in financial classifications?
What does RE stand for in financial classifications?
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What type of account is Dividend Payable in Cash?
What type of account is Dividend Payable in Cash?
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Study Notes
Balance Sheet Classifications
- Accounts Payable: Current liabilities (CL) representing amounts owed to suppliers.
- Accounts Receivable: Current assets (CA) reflecting money owed by customers for goods or services.
- Accrued Interest Receivable on Long-term Investments: Current assets (CA) for earned interest not yet received.
- Accrued Interest Payable: Current liabilities (CL) for interest expenses incurred but not yet paid.
- Accrued Taxes Payable: Current liabilities (CL) representing taxes owed but not yet paid.
- Accumulated Depreciation - Building: Property, Plant, and Equipment (PPE) reflecting the total depreciation on buildings.
- Accumulated Depreciation - Machinery: PPE indicating total depreciation on machinery.
- Mineral Reserves: PPE reflecting the value associated with mineral extraction rights.
- Advances by Customers: Classified as either CL or long-term liabilities (LTL) for payments received before product delivery.
- Advances to Affiliates: Can be categorized as CA, inventory (INV), or other assets (OA) depending on context.
- Advances to Vendors: Can also be CA, INV, or OA depending on the agreement.
- Advertising Expense: Included in the Income Statement (IS) as a cost of advertising.
- Allowance for Bad Debts: Current assets (CA) covering potential losses from uncollectible accounts.
- Allowance for Depreciation: Registered under PPE indicating expected depreciation on assets.
- Allowance for Doubtful Accounts: A subset of CA addressing potential uncollectible customer accounts.
- Allowance for Excess of Cost Over Market Value of Inventory: CA reflecting loss in value of inventory.
- Allowance for Inventory Price Declines: CA addressing declines in inventory value due to market changes.
- Allowance for Purchase Discounts: Current liabilities (CL) for expected discounts on future purchases.
- Allowance for Sales Discounts: CA reflecting potential discounts offered to customers.
- Allowance for Uncollectible Accounts: CA representing allowances for accounts deemed uncollectible.
- Appropriation for Bond Sinking Fund: Retained earnings (RE) set aside for future bond repayments.
- Appropriation for Contingencies: RE for risks or expenses expected in the future.
- Appropriation for Future Plant Expansion: RE reserved for expansions of production facilities.
- Appropriation for Treasury Stock Purchased: RE set aside for buying back company stock.
- Bank Overdraft: CL indicating negative balances in bank accounts.
- Bond Interest Payable: CL for interest due to bondholders.
- Bond Interest Receivable: CA for interest income expected from bonds held.
- Bond Sinking Fund: Classified as an INV for funds set aside for bond repayment.
- Building: Categorized as PPE, representing physical structures owned.
- Cash: Current assets (CA) comprising liquid funds on hand.
- Cash in Preferred Stock Redemption Fund: An investment (INV) for funds earmarked for redeeming preferred shares.
- Cash Surrender Value of Life Insurance: Can be categorized as INV or OA representing the cash value available from the policy.
- Certificate of Deposit: Assets that can be classified as CA or INV depending on maturity and usage.
- Common Stock: Reflects ownership equity (CS) in a corporation.
- Construction in Process: PPE for costs related to ongoing construction projects.
- Creditor's accounts with debit balances: Reflects as CA for receivables due from creditors.
- Current Maturities of Bonds Payable: Represented as LTL when to be paid from a sinking fund.
- Current Maturities of Bonds Payable (general cash): CL for bonds due in the current period.
- Current Portion of Mortgage Payable: Short-term liability classified as CL.
- Current Portion of Long-term Debt: CL indicating the upcoming due portion of long-term obligations.
- Customers' accounts with credit balances: Classified as CL for amounts owed to customers.
- Customer's Deposits: Either CL or LTL based on the agreement nature.
- Deferred Income Tax Asset: Could be CA or OA representing potential future tax benefits.
- Deferred Income Tax Liability: Can be classified as CL or LTL for anticipated tax payments.
- Deferred Property Tax Expense: Recognized as CA for taxes not yet incurred.
- Deferred Office Supplies: Current assets (CA) representing prepaid office supplies.
- Deferred Rental Income: Could be either CL or LTL for income received in advance.
- Deferred Subscription Revenue: Classified as CL or LTL for income from subscriptions paid in advance.
- Deferred Service Contract Revenue: Similar classification as CL or LTL for services not yet rendered.
- Deposits on Equipment Purchases: Recorded as PPE for advances given for equipment.
- Depreciation of Equipment: Listed under IS, reflecting the expense associated with the wear of equipment.
- Discount on Bonds Payable: Long-term liability (LTL) reflecting a reduction from face value on bond issuance.
- Discount on Common Stock: Associated with CS where shares are issued below par value.
- Discount on Notes Payable: Recorded as either CL or LTL, indicates an obligation less than its face value.
- Discount on Notes Receivable: Can be CA or INV, indicating the difference between the face value and the received amount.
- Dishonored Notes Receivable: Marked as CA for notes that have been defaulted.
- Dividend Payable in Cash: Current liability (CL) for cash dividends declared but not yet paid.
- Dividend Payable in Common Stock: Classified under CS, indicating stock dividends declared.
- Earned Rental Revenue: Recognized in IS for rental income that has been earned.
- Accrued Pension Liability: Long-term liability (LTL) for pension payments due in the future.
- Estimated Liability for Income Taxes: Current liabilities (CL) for taxes owed based on accrual accounting.
- Estimated Liability for Warranties: Can range between CL or LTL for anticipated warranty claims.
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Description
Test your knowledge of key balance sheet terms with this classification quiz. Each flashcard focuses on important concepts like accounts payable, receivable, and accrued interests. Perfect for accounting students looking to solidify their understanding of balance sheet components.
