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 list of accounts below identifies only accounts that would appear on a classified balance sheet?

Prepaid Rent, Interest Expense, Common Stock, Dividends

Inventory, Service Revenue, Salaries Expense, Notes Payable

Cash, Accounts Receivable, Equipment, Accounts Payable

Sales Revenue, Cash, Utilities Expense, Retained Earnings

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Verified step by step guidance

Step 1: Understand the concept of a classified balance sheet. A classified balance sheet organizes assets, liabilities, and equity into subcategories to provide more detailed information. Common categories include Current Assets, Non-Current Assets, Current Liabilities, Non-Current Liabilities, and Equity.

Step 2: Identify the types of accounts that typically appear on a classified balance sheet. These include accounts such as Cash, Accounts Receivable, Inventory, Equipment (assets), Accounts Payable, Notes Payable (liabilities), and Equity accounts like Common Stock and Retained Earnings.

Step 3: Analyze each list of accounts provided in the problem. Determine whether the accounts in each list fit into the categories of a classified balance sheet. For example, Prepaid Rent is a Current Asset, but Interest Expense and Dividends are not balance sheet accounts—they belong to the income statement or statement of retained earnings.

Step 4: Evaluate the correct answer provided: 'Cash, Accounts Receivable, Equipment, Accounts Payable.' These accounts fit into the classified balance sheet categories: Cash and Accounts Receivable are Current Assets, Equipment is a Non-Current Asset, and Accounts Payable is a Current Liability.

Step 5: Compare the correct answer to the other options. Ensure that none of the other lists contain only accounts that belong on a classified balance sheet. For example, Sales Revenue and Utilities Expense are income statement accounts, not balance sheet accounts.