Solved

Accountants Classify Various Items on the Balance Sheet or the Income

Question 57

Matching

Accountants classify various items on the balance sheet or the income statement in one of the following ways:
Using the abbreviations above, indicate the classification of each of the following items:

Premises:

Responses:

Interest revenue

Current liabilities

Cash on hand

Retained earnings

Common stock issued by the corporation

Noncurrent liabilities

Employee taxes payable

Income statement item (revenue or expense)

Factory

Current assets

Unsettled damage suit against the corporation, probability and amount of settlement uncertain

Item generally not appearing on a balance sheet

Trucks used for deliveries

Contributed capital

__________ prepaid insurance

Noncurrent assets

Note payable, due in 7 years

Commissions earned by the sales staff

Premises:

Interest revenue

Cash on hand

Common stock issued by the corporation

Employee taxes payable

Factory

Unsettled damage suit against the corporation, probability and amount of settlement uncertain

Trucks used for deliveries

__________ prepaid insurance

Note payable, due in 7 years

Commissions earned by the sales staff

Responses:

Current liabilities

Retained earnings

Noncurrent liabilities

Income statement item (revenue or expense)

Current assets

Item generally not appearing on a balance sheet

Contributed capital

Noncurrent assets

Correct Answer:

Premises:

Responses:

Interest revenue

Cash on hand

Common stock issued by the corporation

Employee taxes payable

Factory

Unsettled damage suit against the corporation, probability and amount of settlement uncertain

Trucks used for deliveries

__________ prepaid insurance

Note payable, due in 7 years

Commissions earned by the sales staff