II. Matching ½ point each A classified balance sheet contains the following cate
ID: 2567739 • Letter: I
Question
II. Matching ½ point each A classified balance sheet contains the following categories:
17 points
A. Current assets
B. Noncurrent assets
C. Current liabilities
D. Noncurrent liabilities
E. Stock Holders Equity
F. Not on balance sheet
Identify which category each of the following items would be placed in when constructing a classified balance sheet. Indicate your answer by placing the appropriate letter in the space provided.
____ 11. Cash in a savings account at Wells Fargo Bank.
____ 12. Intangible assets.
____ 13. Prepaid Insurance.
____ 14. Notes receivable due within one year.
____ 15. Accounts receivable.
____ 16. Long-term lease obligations.
____ 17. Gain on sale of plant assets.
____ 18. Income tax payable.
____ 19. Unearned revenue from rent received in advance.
____ 20. Capital Stock.
____ 21. Petty Cash.
____ 22. Finished Goods Inventory.
____ 23. Mortgage payable.
____ 24. Equipment.
____ 25. Goodwill
____ 26. Loss on sale of fixed assets.
____ 27. Cost of Goods Sold.
Explanation / Answer
11. Current assets since these assets are liquid.
12. Non current assets since these are fixed assets.
13. Current assets since it is a short term asset
14. Current assets since it is a short term asset
15. Current assets since it is a short term asset
16. Noncurrent liabilities since it is a long term liability
17. Stock holders Equity as it will come under income that will be reflected in retained earnings in balance sheet. Otherwise it is directly not reported on balance sheet.
18. Current liabilities since it is a short term liabilities
19. Current liabilities since it is a short term liabilities
20. stockholders Equity since it is a common Equity
21. Current assets since it is a short term asset
22. Current assets since it is a short term asset
23. Noncurrent liabilities since it is a long term liabilities assuming a principal payment
24. Noncurrent assets since it is a long term asset
25. Noncurrent assets since it is a long term asset
26. Stock holders Equity as it will come under income that will be reflected in retained earnings in balance sheet. Otherwise it is directly not reported on balance sheet.
27. Not on balance sheet, it comes under income statement