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

In a classified balance sheet, liabilities are separated into two categories based on:

the amount owed

their maturity or due date

the type of creditor

the interest rate applied

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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 more detailed information about the financial position of a company.

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

Learn the classification criteria for liabilities: In a classified balance sheet, liabilities are categorized based on their maturity or due date. This means they are divided into current liabilities (due within one year) and non-current liabilities (due after one year).

Recognize examples of current liabilities: These include accounts payable, short-term loans, and accrued expenses, which are obligations expected to be settled within the next 12 months.

Recognize examples of non-current liabilities: These include long-term loans, bonds payable, and lease obligations, which are obligations expected to be settled after 12 months.