Classified Balance Sheet

Question 1

First:

Answer 1

Current Assets

Question 2

Current Assets definition:

Answer 2

Assets a company expects to convert to cash/use up within an operating cycle

Question 3

Current assets include:

Answer 3

Cash, investments, accounts receivable, prepaid expenses (supplies, insurance)

Question 4

Second:

Answer 4

Long term investments

Question 5

Long term investments definition:

Answer 5

Investments a company is not planning to convert to cash

Question 6

Long term investments include:

Answer 6

Investments in stocks, any owned land/buildings not currently in use

Question 7

Third:

Answer 7

Property, plant, equipment

Question 8

Property, plant, equipment definition:

Answer 8

Any PPE currently used in operations

Question 9

Property, plant, equipment includes:

Answer 9

Land, equipment - SUBTRACT accumulated depreciation from both

Question 10

Fourth:

Answer 10

Intangible assets

Question 11

Intangible assets include:

Answer 11

Licenses, patents

Question 12

Fifth

Answer 12

Current liabilities

Question 13

Current liabilities definition:

Answer 13

Liabilities the company has to pay within the operating cycle

Question 14

Current liabilities include:

Answer 14

Notes payable, accounts payable, then listed in order of magnitude

Question 15

Sixth

Answer 15

Long-term liabilities

Question 16

Long-term liabilities definition:

Answer 16

Liabilities the company doesn’t have to pay off within the current operating cycle

Question 17

Long-term liabilities include:

Answer 17

Bonds, notes

Question 18

Seventh

Answer 18

Stockholders’ equity

Question 19

Stockholders’ equity includes:

Answer 19

Common stock, retained earnings