Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

2. Transaction Analysis

Classified Balance Sheet Components

Financial Accounting

2. Transaction Analysis

Classified Balance Sheet Components

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Multiple Choice

How are liabilities usually classified on a classified balance sheet?

As accrued and deferred liabilities

As tangible and intangible liabilities

As operating and non-operating liabilities

As current liabilities and long-term liabilities

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Verified step by step guidance

Understand the concept of a classified balance sheet: A classified balance sheet organizes assets, liabilities, and equity into subcategories to provide a clearer financial picture.

Focus on liabilities: Liabilities represent obligations the company owes to external parties, such as creditors or suppliers.

Learn the classification criteria: Liabilities are typically divided into two main categories based on their due dates—current liabilities and long-term liabilities.

Define current liabilities: These are obligations expected to be settled within one year or the operating cycle, whichever is longer. Examples include accounts payable, short-term loans, and accrued expenses.

Define long-term liabilities: These are obligations that are not expected to be settled within one year or the operating cycle. Examples include bonds payable, long-term leases, and pension obligations.