Podcast
Questions and Answers
What are included in Current Assets? (Select all that apply)
What are included in Current Assets? (Select all that apply)
What are considered Long-term Investments? (Select all that apply)
What are considered Long-term Investments? (Select all that apply)
What is included under Property, Plant, and Equipment?
What is included under Property, Plant, and Equipment?
Land, equipment, and less accumulated depreciation on equipment.
What are examples of Intangible Assets?
What are examples of Intangible Assets?
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What are examples of Current Liabilities? (Select all that apply)
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)
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)
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.
