Balance Sheet

Question 1

What is Cash (unrestricted and restricted)?

Answer 1

Current Assets - Cash consists of (1) coin and currency on hand, (2) demand deposits (checking accounts), (3) time deposits (savings accounts), and (4) near-cash assets (e.g., deposits in transit or commercial paper, also known as negotiable instruments).

Question 2

Temporary term investments (trading securities)

Answer 2

Current Assets

Question 3

Receivables (NRV)

Answer 3

Current Assets

Question 4

NRV (Net Realizable Value)

Answer 4

amount you expect to receive within 1 year or the accounting cycle

Question 5

Tax and Other Refunds

Answer 5

Receivables (Current Assets)

Question 6

Receivables from affiliates and employees and overpayments to creditors

Answer 6

Receivables (Current Assets)

Question 7

Accounts receivable, net of allowance for bad debts

Answer 7

Receivables (Current Assets)

Question 8

Current portions of installments receivable and notes receivable

Answer 8

Receivables (Current Assets)

Question 9

Inventories (LCM)

Answer 9

Current Assets

Question 10

LCM

Answer 10

Lower of Cost of Market

Question 11

Raw Materials

Answer 11

Inventories (Current Assets)

Question 12

Work-in-progress

Answer 12

Inventories (Current Assets)

Question 13

Finished goods

Answer 13

Inventories (Current Assets)

Question 14

Prepaid Expenses (insurance and rent)

Answer 14

Current Assets

Question 15

Current Deferred Taxes

Answer 15

Current Assets

Question 16

Nonmarketable securities (equity method securities)

Answer 16

Noncurrent Investments - non current assets

Question 17

Long-term investments in marketable debt securities (available for sale and held to maturity)

Answer 17

Noncurrent Investments - non current assets

Question 18

Land, buildings and improvements (Book value Less accumulated depreciation)

Answer 18

Property, Plant & Equipment (Fixed Assets) - non current assets

Question 19

Machinery and equipment, leased assets (Book value Less accumulated depreciation)

Answer 19

Property, Plant & Equipment (Fixed Assets) - non current assets

Question 20

Goodwill (test for impairment annually)

Answer 20

Intangible Assets (net of amortization) - non current assets

Question 21

Other identifiable intangibles such as patents, trademarks and copyrights

Answer 21

Intangible Assets (net of amortization) - non current assets

Question 22

Customer Deposits

Answer 22

Other Assets - non current assets - Customer deposits and unearned rents represent amounts already received and included in cash in exchange for goods or services that have not yet been delivered. These items are liabilities, not assets.

Question 23

Noncurrent receivables (including portions of installments receivable and notes receivable)

Answer 23

Other Assets - non current assets

Question 24

Noncurrent deferred tax asset

Answer 24

Other Assets - non current assets

Question 25

Equipment to be disposed of

Answer 25

Other Assets - non current assets

Question 26

Short-term notes payable

Answer 26

Current Liabilities

Question 27

Accounts Payable

Answer 27

Current Liabilities

Question 28

Accrued expenses such as salaries and wages, interest and utilities (things incurred but not yet paid)

Answer 28

Current Liabilities

Question 29

Estimated current liabilities such as warranty expense

Answer 29

Current Liabilities

Question 30

Taxes payable such as income taxes, collected sales taxes and withheld payroll taxes

Answer 30

Current Liabilities

Question 31

Unearned revenues including rents or fees collected in advance

Answer 31

Current Liabilities - Customer deposits and unearned rents represent amounts already received and included in cash in exchange for goods or services that have not yet been delivered. These items are liabilities, not assets.

Question 32

Dividends Payable

Answer 32

Current Liabilities

Question 33

Current portion of long-term debt such as noncurrent portions of capital lease obligations and notes and loans payable

Answer 33

Current Liabilities

Question 34

Notes payable net of current portion

Answer 34

Noncurrent Liabilities

Question 35

Bonds payable

Answer 35

Noncurrent Liabilities

Question 36

Noncurrent deferred tax liability

Answer 36

Noncurrent Liabilities

Question 37

Other noncurrent liabilities such as noncurrent portions of capital lease obligations and warranty obligations

Answer 37

Noncurrent Liabilities

Question 38

Deferred liabilities such as liabilities under pension plans, post-employment plans and post-retirement plans

Answer 38

Noncurrent Liabilities

Question 39

Contributed Capital (APIC) - Preferred Stock - Common Stock (net of T/S at par) - Additional paid-in capital (APIC)

Answer 39

Stockholder's equity

Question 40

Noncontrolling interest (minority interest)

Answer 40

Stockholders equity

Question 41

Earned capital - Retained earnings (appropriated and unappropriated) - Accumulated other comprehensive income (OCI) - (DENT)

Answer 41

Stockholders equity

Question 42

Subtract from stockholders equity treasury stock at cost

Answer 42

Stockholders equity

Question 43

Land held for resale goes in which section on the balance sheet?

Answer 43

Inventories - Current Assets

Question 44

Accounting Equation

Answer 44

Total Assets = Total Liabilities + Stockholders Equity | A=L+E

Question 45

What is a trial balance?

Answer 45

A trial balance sheet is a report that lists the ending balances of each account in the chart of accounts in balance sheet order.

Question 46

Where on the balance sheet are bond-sinking funds accounted for?

Answer 46

Net of cash if specified or as non current asset

Question 47

What is a cash equivalent?

Answer 47

Cash equivalents are short-term, highly liquid investments/securities. Normally, only investments with original maturities of 3 months or less qualify (e.g. Commercial paper maturing in two months)

Question 48

What is a compensating balance?

Answer 48

The minimum balance that must be maintained in a bank account, used to offset the cost incurred by a bank to set up a business loan. The compensating balance is not available for company use, and may need to be disclosed in the borrower's notes to the financial statements