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Part 1: Balance Sheet Classify the list of financial elements within the differe

ID: 2561723 • Letter: P

Question

Part 1: Balance Sheet

Classify the list of financial elements within the different categories of a balance sheet.

Categories

Elements

Short-term assets

Long-term assets

Short-term liabilities

Long-term liabilities

Owner’s equity

Cash

Accounts payable

Land

Property, plant, and equipment

Inventory

Accounts receivable

Paid in capital

Retained earnings

Notes payable

Mortgage

Then, explain in 2 or 3 paragraphs which sequence the four major financial statements need to be prepared for, and why.

Part 2: Statement of Cash Flow

Classify the list of financial elements within the different categories of a statement of cash flow.

Categories

Elements

Operating activities

Investing activities

Financing activities

Net income-decreased for period

Accounts receivable increase for period

Accounts payable decrease for period

Accruals decrease for period

Depreciation-increases for period

Stock issued

Property purchased

Bonds paid off

Inventories increase for period

Accrued liabilities decrease

Notes payable increase for period

Bonds redeemed for period

Inventory-decreased for period

Then, in a 1-page paper, explain whether or not each item would be considered a source or use of cash for the period in question.

Categories

Elements

Short-term assets

Long-term assets

Short-term liabilities

Long-term liabilities

Owner’s equity

Cash

Accounts payable

Land

Property, plant, and equipment

Inventory

Accounts receivable

Paid in capital

Retained earnings

Notes payable

Mortgage

Explanation / Answer

Classify the list of financial elements within the different categories of a balance sheet

Classify the list of financial elements within the different categories of a statement of cash flow

Elements Categories cash Short-term assets Account payable Short-term liabilities Land Long-term assets Property, plant, and equipment Long-term assets Inventory Short-term assets Account receivable Short-term assets Paid in capital Owner’s equity Retained earnings Owner’s equity notes payable Short-term liabilities Mortgage Long term Liabilities