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

Previous problemNext problem

Struggling with Financial Accounting?

Join thousands of students who trust us to help them ace their exams!Watch the first video

Multiple Choice

Which of the following are typical categories for assets and liabilities on a classified balance sheet?

Current assets, long-term assets, current liabilities, and long-term liabilities

Fixed assets, variable assets, short-term liabilities, and contingent liabilities

Tangible assets, intangible assets, accrued liabilities, and deferred liabilities

Operating assets, non-operating assets, temporary liabilities, and permanent liabilities

Previous problemNext problem

Verified step by step guidance

Step 1: Understand the concept of a classified balance sheet. A classified balance sheet organizes assets and liabilities into categories based on their characteristics and time frames, making it easier to analyze a company's financial position.

Step 2: Review the typical categories for assets. Assets are generally divided into 'current assets' (expected to be converted into cash or used within one year) and 'long-term assets' (held for longer periods, such as property, plant, and equipment).

Step 3: Review the typical categories for liabilities. Liabilities are divided into 'current liabilities' (obligations due within one year) and 'long-term liabilities' (obligations due after one year).

Step 4: Compare the options provided in the problem. Identify which option aligns with the standard categories used in a classified balance sheet: current assets, long-term assets, current liabilities, and long-term liabilities.

Step 5: Eliminate incorrect options by recognizing that terms like 'fixed assets,' 'variable assets,' 'temporary liabilities,' and 'permanent liabilities' are not standard classifications used in a classified balance sheet.