Chapter 3

Question 1

Equipment

Balance sheet classification

Answer 1

PP&E

Question 2

Accounts Payable

Balance sheet classification

Answer 2

Current Liabilities

Question 3

Allowance for Uncollectible Accounts

Balance sheet classification

Answer 3

Contra: Current Assets

Question 4

Land (held for investment)

Balance sheet classification

Answer 4

Investments

Question 5

Note Payable (5 years)

Balance sheet classification

Answer 5

Long term liabilities

Question 6

Deferred Revenues (12 months)

Balance sheet classification

Answer 6

Current liabilities

Question 7

Note Payables (in 6 months)

Balance sheet classification

Answer 7

Current liabilities

Question 8

All net income less dividends

Balance sheet classification

Answer 8

Retained Earnings

Question 9

Investment in XYZ Corp (long term)

Balance sheet classification

Answer 9

Investments

Question 10

Inventory

Balance sheet classification

Answer 10

Current Assets

Question 11

Patent

Balance sheet classification

Answer 11

Intangible Assets

Question 12

Land

Balance sheet classification

Answer 12

PP&E

Question 13

Accrued Liabilities (due in 6 months)

Balance sheet classification

Answer 13

Current liabilities

Question 14

Prepaid Rent

Balance sheet classification

Answer 14

Current assets

Question 15

Common Stock

Balance sheet classification

Answer 15

Paid in capital

Question 16

Building (used in operations)

Balance sheet classification

Answer 16

PP&E

Question 17

Cash

Balance sheet classification

Answer 17

Currents assets

Question 18

Income taxes payable

Balance sheet classification

Answer 18

Current liabilities

Question 19

Financial Statement Disclosure

Depreciation Method

Summary of Signficant Account Policies or Separate Note?

Answer 19

Summary of signficant account policies

Question 20

Financial Statement Disclosure

Contingency information

Summary of Signficant Account Policies or Separate Note?

Answer 20

Separate note

Question 21

Financial Statement Disclosure

Issuance of common stock after fiscal year end

Summary of Signficant Account Policies or Separate Note?

Answer 21

Separate Note

Question 22

Financial Statement Disclosure

Cash equivalent designation

Summary of Signficant Account Policies or Separate Note?

Answer 22

Summary of signficant account policies

Question 23

Financial Statement Disclosure

Long term debt information

Summary of Signficant Account Policies or Separate Note?

Answer 23

Separate note

Question 24

Financial Statement Disclosure

Inventory costing method

Summary of Signficant Account Policies or Separate Note?

Answer 24

Summary of signficant account policies

Question 25

# Financial Statement Disclosure Related party transaction ## Footnote Summary of Signficant Account Policies / Separate Note / Face of Balance Sheet?

Answer 25

Separate note

Question 26

# Financial Statement Disclosure Depreciation Method ## Footnote Summary of Signficant Account Policies / Separate Note / Face of Balance Sheet?

Answer 26

Summary of signficant account policies

Question 27

# Financial Statement Disclosure Allowance for uncollectible accounts ## Footnote Summary of Signficant Account Policies / Separate Note / Face of Balance Sheet?

Answer 27

Balance Sheet

Question 28

# Financial Statement Disclosure Composition of investments ## Footnote Summary of Signficant Account Policies / Separate Note / Face of Balance Sheet?

Answer 28

Separate note

Question 29

# Financial Statement Disclosure Composition of long term debt ## Footnote Summary of Signficant Account Policies / Separate Note / Face of Balance Sheet?

Answer 29

Separate note

Question 30

# Financial Statement Disclosure Inventory costing method ## Footnote Summary of Signficant Account Policies / Separate Note / Face of Balance Sheet?

Answer 30

Summary of signficant account policies

Question 31

# Financial Statement Disclosure #Shares of common stock authorized, issued, outstanding ## Footnote Summary of Signficant Account Policies / Separate Note / Face of Balance Sheet?

Answer 31

Balance Sheet

Question 32

# Financial Statement Disclosure Employee benefit plans ## Footnote Summary of Signficant Account Policies / Separate Note / Face of Balance Sheet?

Answer 32

Separate note

Question 33

Will be satisfied through the use of current assets?

Answer 33

Current liabilities

Question 34

Items coverted to cash or consumed within one year of the operating cycle, whichver is longer?

Answer 34

Current assets

Question 35

Statements are presented fairly in conformity with GAAP

Answer 35

Unqualified opinion

Question 36

An organized array of assets, liabilites, and equity

Answer 36

Balance sheet

Question 37

Important to a user in comparing financial information accross companies

Answer 37

Summary of Significant Accounting Policies

Question 38

Small departure from GAAP, fairly reliable

Answer 38

Qualfied opinion

Question 39

Recorded when an expense is incurred but not paid

Answer 39

Accrued liabilities

Question 40

Refers to the ability of a company to convert its assets to cash to pay its current obligations

Answer 40

Liquidity

Question 41

Occurs after the fiscal year-end but before but before the statements are issued

Answer 41

Subsequent events

Question 42

Period of time from payment of cash to collection of cash

Answer 42

Operating cycle

Question 43

One-month US treasury bill equivalent to...

Answer 43

Cash

Question 44

Current assets minus current liabilities

Answer 44

Working capital

Question 45

Assets that lack physical substance

Answer 45

Intangible

Question 46

The amount that shareholders have invested into the company is

Answer 46

Paid in capital

Question 47

Interest payable in 3 months ## Footnote Balance sheet classification

Answer 47

Current liabilities

Question 48

Franchise ## Footnote Balance sheet classification

Answer 48

Intangible Assets

Question 49

Accumulated Depreciation ## Footnote Balance sheet classification

Answer 49

Contra - PP&E

Question 50

Prepaid Insurance ## Footnote Balance sheet classification

Answer 50

Current assets

Question 51

Bonds payable in 10 years ## Footnote Balance sheet classification

Answer 51

Long term liabilities

Question 52

Current maturities of long term debt ## Footnote Balance sheet classification

Answer 52

current liabilities

Question 53

Note payable in 3 months ## Footnote Balance sheet classification

Answer 53

Current liabilities

Question 54

Long term receivables ## Footnote Balance sheet classification

Answer 54

Investments

Question 55

Restricted cash (to retire bonds in 10 years) ## Footnote Balance sheet classification

Answer 55

Long Term Assets: Investments

Question 56

Supplies ## Footnote Balance sheet classification

Answer 56

Current assets

Question 57

Machinery ## Footnote Balance sheet classification

Answer 57

PP&E

Question 58

Land used in operations ## Footnote Balance sheet classification

Answer 58

PP&E

Question 59

Deferred revenue (within a year) ## Footnote Balance sheet classification

Answer 59

Current liabilities

Question 60

Copyrights ## Footnote Balance sheet classification

Answer 60

Intangible assets

Question 61

Common Stock ## Footnote Balance sheet classification

Answer 61

Paid in capital

Question 62

Land held for speculation ## Footnote Balance sheet classification

Answer 62

Assets - Long Term: Investments

Question 63

Cash equivalents ## Footnote Balance sheet classification

Answer 63

Current assets

Question 64

Salaries payable ## Footnote Balance sheet classification

Answer 64

Current liabilities