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

Two common subgroups for liabilities on a classified balance sheet are:

Current liabilities and long-term liabilities

Tangible liabilities and intangible liabilities

Operating liabilities and non-operating liabilities

Direct liabilities and indirect liabilities

Previous problemNext problem

Verified step by step guidance

Understand the concept of liabilities: Liabilities are obligations that a company owes to external parties, typically arising from past transactions or events.

Learn about the classified balance sheet: A classified balance sheet organizes assets, liabilities, and equity into subcategories to provide more detailed financial information.

Focus on liability subgroups: On a classified balance sheet, liabilities are typically divided into two main subgroups: current liabilities and long-term liabilities.

Define current liabilities: These are obligations that are expected to be settled within one year or the operating cycle, whichever is longer. Examples include accounts payable, short-term loans, and accrued expenses.

Define long-term liabilities: These are obligations that are not expected to be settled within one year or the operating cycle. Examples include bonds payable, long-term leases, and pension obligations.