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

Which of the following items should be included in the current assets section of a classified balance sheet?

Land

Accounts Receivable

Equipment

Bonds Payable

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Verified step by step guidance

Step 1: Understand the concept of current assets. Current assets are resources that are expected to be converted into cash, sold, or consumed within one year or the operating cycle, whichever is longer.

Step 2: Review the items listed in the problem and determine whether they meet the criteria for current assets. For example, accounts receivable represents amounts owed to the company by customers and is typically expected to be collected within one year, making it a current asset.

Step 3: Analyze the other items provided: Land, Equipment, and Bonds Payable. Land and Equipment are long-term assets because they are not expected to be converted into cash within one year. Bonds Payable is a liability, not an asset, and therefore does not belong in the current assets section.

Step 4: Confirm that Accounts Receivable is the correct answer because it meets the definition of a current asset and is expected to be converted into cash within the short-term period.

Step 5: Conclude that only Accounts Receivable should be included in the current assets section of a classified balance sheet, based on the analysis of the items provided.