Flashcards in Chapter 3 Final Exam Study Deck (13):
Which of the following is not a characteristic of the balance sheet?
-The major classifications of the balance sheet are assets, liabilities, and owners' equity.
-The balance sheet reports the change in financial position.
-Assets generally are listed in order of their liquidity.
-The balance sheet provides information useful in assessing liquidity.
The balance sheet reports the change in financial position.
The basis used to classify assets as current or long-term is:
Usually one year, because the operating cycle typically is less than one year.
An item not generally classified as a current asset is:
Included in the category of current liabilities would be:
Obligations expected to require the creation of other current liabilities.
An item not generally classified as a current liability is:
Current assets minus current liabilities equals:
Long-lived assets used in the operations of the business refer to property, plant, and equipment, and:
Balance sheets prepared using International Financial Reporting Standards often:
Report long-term assets and liabilities before current assets and liabilities.
Information not generally disclosed in the summary of significant accounting policies is:
A related party transaction.
The compensation of directors and top executives is disclosed in:
The proxy statement
Which ratio most directly indicates the extent of the company's reliance on financial leverage?
Debt to equity
The acid-test ratio excludes which of the following elements from the numerator?