Exam 4: The Balance Sheet and the Statement of Changes in Stockholders Equity

Under international accounting standards, liabilities and owners' equity on the balance sheet usually appear in which order?

A list of statements follows: a. A balance sheet summarzes the $\underline{\quad\quad}$ of a comparyy. b. GAAP defines the $\underline{\quad\quad}$ of a corporate balance sheet. c. Temporay investments in marketable securities are clas ified as $\underline{\quad\quad}$ and securities available for sale. d. $\underline{\quad\quad}$ is the amount of stockholders' equity that a corporation may not distribute as dividends. e. Unrealized increase in the value of available-for-sale securities is an example of $\underline{\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad}$ f. $A P B$ OpinionNo. 22 recommends that the first footnote to the financial statements describe a company's $\underline{\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad}$ g. A(n) $\underline{\quad\quad}$ is one that occurs between the balance she date and the date the anmual repor Required: Fill in the words necessary to complete the statements.

The expected exit value is also referred to as the

Which of the following account titles would not be included in contributed capital?

Assume an asset is measured by the amount of cash (or its equivalent)into which it is expected to be converted in an orderly transaction between market participants on the date of measurement.Which measurement alternative is in use in this case?

Which of the following would not be classified as contributed capital?

Which of the following characteristics must an economic resource have in order to be classified as an asset?

The balance sheet contains the major sections (a-j)listed below.A listing of balance sheet accounts (1-10)follows. Required: Using the letters (a-j), indicate in which section of the balance sheet the accounts (1-10)would most likely be classified.

Current liabilities would include all of the following except

A leased asset under capital lease is disclosed on the balance sheet at its

Which statement is not true?

Listed below are ten terms describing the purposes of the balance sheet.Following the list is a series of descriptive phrases. Required: Match each term with its descriptive statement by placing the appropriate letter in the space provided.

Cash equivalents are securities that

A friend comes to you with a set of financial statements that he thinks contains an error.The footnotes contain a note on a bond issue sold after the end of the reporting period.Your friend is sure this is an error because the transaction occurred after the cutoff date for the financial statements. Required: Explain to your friend why certain items that occur after the end of an accounting period are included in the financial statements and the manner in which they can be disclosed.

Which of the following statements is not true regarding the hierarchy of fair value measurements now provided in GAAP?

The following data were taken from the Otay, Inc.balance sheet: Accountspayable \ 150 Inventory 250 Retained earnings 40 Accumulated depreciation 300 Cash 500 Serial bonds payable ( \2 00 matures each year) 800 Prepaid insurance 200 Allowance for doubtful accounts 20 Capital stock 440 Property, plant, and equipment 1,000 Accountsrecivable (gross) 110 Acculed salaries 310 Required: Compute working capital.

A corporation's balance sheet is usually divided into three sections with various subclassifications reported within each group in an informative manner.Listed below are some typical subclassifications. Contributed capital Other assets Current assets Other liabilities Current liabilities Property, plant, \& equipment Intangible assets Retained earnings Long-term investments Accumulated other comprehensive income Long-term liabilities Required: Identify each of the three balance sheet sections and list the subclassifications within each section in the appropriate order.

The integrated disclosures required by the SEC for all regulated companies include all of the following except

The ease with which an asset can be converted into cash is termed

Which of the following assets is most likely reported at its historical cost on the balance sheet?