Questions and Answers
What are included in Current Assets? (Select all that apply)
What are considered Long-term Investments? (Select all that apply)
What is included under Property, Plant, and Equipment?
Land, equipment, and less accumulated depreciation on equipment.
What are examples of Intangible Assets?
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What are examples of Current Liabilities? (Select all that apply)
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What are examples of Long-term Liabilities? (Select all that apply)
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What are components of Stockholder's Equity? (Select all that apply)
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Study Notes
Current Assets
- Include cash and cash equivalents, which provide liquidity for immediate needs.
- Debt investments represent funds invested in bonds or other securities for returns.
- Notes receivable are amounts owed by customers or other entities as formal agreements.
- Inventory refers to goods available for sale along with raw materials.
- Supplies denote items used in daily operations but not for sale.
- Prepaid insurance is an expense paid in advance, providing coverage over time.
Long-term Investments
- Comprise stock investments, enhancing company portfolio and income potential.
- Include real estate investments that generate appreciation or rental income over the long term.
Property, Plant, and Equipment (PP&E)
- Consists of land and buildings utilized for operations, essential for production.
- Equipment is listed with an accompanying deduction for accumulated depreciation, reflecting wear and tear over time.
Intangible Assets
- Represent non-physical assets like patents which grant exclusive rights to produce or sell inventions.
Current Liabilities
- Comprise notes payable, which are written promises to pay debts within a short time.
- Accounts payable encompass outstanding bills for purchases made on credit.
- Unearned sales revenue indicates payments received before the delivery of goods or services.
- Salaries and wages payable reflect amounts owed to employees for work performed.
- Interest payable denotes interest charges that have accrued on loans but remain unpaid.
Long-term Liabilities
- Include mortgage payable, representing long-term loans secured by property.
- Encompass notes payable for debts not due in the short term, indicating longer repayment schedules.
Stockholder's Equity
- Consists of common stock, representing ownership shares in the company.
- Retained earnings are accumulated profits not distributed as dividends, reinvested into the business for growth.
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Description
Test your knowledge with these flashcards covering key elements of a classified balance sheet. Each card details definitions of current assets, long-term investments, property, plant and equipment, among others. Perfect for accounting students and professionals wanting to sharpen their understanding of financial statements.
