CH 1.2

Question 1

Current Assets (5)CAAIP

Answer 1

1. Cash2. available for sale3. AR4. Inventories5. prepaid expenses

Question 2

Non Current Assets (4)IPIO

Answer 2

1. investments and funds2. ppe3. intangible assets, goodwill, patents4. other noncurrent assets

Question 3

Current Liabilities (4)AOUO

Answer 3

• AP- Other payables, salaries accrued wages, rent, royalties,taxes- unearned revenue, ticket sales- Obligations, notes payable, maturaties of noncurrent liabilities, short term notes

Question 4

Non Current Liabilities (7)NCPDWAD

Answer 4

1. Noncurrent notes, bonds2, capital lease liabilities3. post retirement benefit obligations4. deferred tax liabilities from interperiod tax allocation5. warranty agreement obligations6. advances for to provide goods and svcs7, deferred revenue

Question 5

Treasury Stock is

Answer 5

A firms own stock that is repurchased.reported at COST as deduction from total equityreported at PAR as reduction of capital accountreported as deduction of equity

Question 6

Balance sheet note disclosures include (6)

Answer 6

1. significant accounting policies, revenue recognition, estimates2. investment securities3. ppe4. maturity of bond issues5. uncertainties, litigation6. capital stock issues

Question 7

balance sheet limitations (2)

Answer 7

1. balances vary before and after publication2. shows historical values, not current.