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Flashcards in Unit 9-10 Deck (10)
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1

what is a worksheet?

A form that organizes the accounting data required for the preparation of financial statements

2

what is a classified balance sheet?

A classified balance sheet is a balance sheet that list items and special category such as crane fixed assets and current and long-term liabilities

3

what is a current asset?

cash or some other asset that in the normal course of operations will be converted to cash or sold or consumed within the year they are listed in order of liquidity

4

what are prepaid expenses?

expense payments made in advance

5

what are fixed assets?

assets that have a long life usually over one year

6

what are current liabilities?

abilities due to be paid within a year

7

what are long-term liabilities?

liabilities that are not due to be paid for more than one year

8

what is a statement of owners equity?

it describes the changes in owners equity for the accounting period

9

what is a supporting schedule?

supporting schedule provides details about an item on a main statement

10

why are the steps in preparing a work sheet?

write the heading
record the trial balance
transfer the balance sheet items
transfer the income statement items
complete the income statement section
complete the balance sheet section
rule the work sheet