Accounting Standards Cont'd Flashcards
1
Q
CLASSIFIED BALANCE SHEET
A
a financial document that subcategories the assets, liabilities, and shareholder equity and presents meaningful classification within these broad categories.
2
Q
CURRENT ASSETS
A
Cash and assets that will be converted into cash within one year
3
Q
LONG-TERM ASSETS
A
Items such as land, buildings, automobiles, equipment
Assets longer than one year
4
Q
CURRENT LIABILITIES
A
Debts that need to be paid within less than a 12-month period
5
Q
LONG-TERM LIABILITIES
A
Take more than one year to pay off
Eg.
Mortgage
Loan
6
Q
WHAT ARE THE BENEFITS OF A CLASSIFIED BALANCE SHEET
A
Helps the reader gain meaning & insight
7
Q
STATEMENT OF FINANCIAL POSITION
A
to represent accurate and vital financial information about any company’s Equity, assets, and liabilities
