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

A classified balance sheet shows subtotals for current and noncurrent categories. Which of the following best completes the statement: 'A classified balance sheet shows subtotals for current and ________ items'?

noncurrent

tangible

operating

liquid

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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 categories to provide a clearer financial picture. The main categories are current and noncurrent items.

Define current items: Current items are assets or liabilities expected to be used, sold, or settled within one year or the operating cycle, whichever is longer. Examples include cash, accounts receivable, and accounts payable.

Define noncurrent items: Noncurrent items are assets or liabilities that are not expected to be used, sold, or settled within one year. Examples include long-term investments, property, plant, and equipment, and long-term debt.

Analyze the options provided: The term 'noncurrent' directly complements 'current' in the context of a classified balance sheet. Tangible, operating, and liquid are not appropriate terms to complete the statement because they do not align with the classification structure of a balance sheet.

Conclude that the correct completion of the statement is 'noncurrent,' as it accurately reflects the organization of items in a classified balance sheet.