Balance Sheet

Question 1

Balance Sheet

Answer 1

• Dated at point in time

- Only A - L and OE plus contra Ctta(-) and adjunct (+)

Question 2

Current Assets

Answer 2

Expected to be ralized in Cash or consume during a normal operating cyclo or withing one year
declining order of liquidity
Cash-csh equiv, shorT investmt AR, other AR, Inv, prepaids
Csh is the only acct, where Nominal, Mkt, Realzbl, present and future value are the same

Question 3

Non-current assets

Answer 3

Long Term Invest, PPEm Intangibles, otehr asstes including long term prepaids(GW is reported in the bal sh only when a firm is purchase by aother, internally generated GW is expensed)

Question 4

Current Liabt

Answer 4

Extiguised by the use of the current asset

A/P, Accr liabl, unearned rev, inc tax pybl , notes paybl, current portion of long term debt.

Question 5

Long term Liabl

Answer 5

Notes pybl, bonds pybl, lease liabl, pension liablt, postretirement hc liab, deferred taxes

Question 6

Owners Equity

Answer 6

a. - contributed capital(C Stk, pref Stk,Contbt capital in excess of par, Treasury stock a contra account
b. - RE (total net income to date less total div to date

Question 7

Balance sheet Ratios

Answer 7

Measures Liquidity
Current ration= Current Assets/Current Liabl
Quick Asset Ratio=Cash+sht term invt+AR/Current Libl

Question 8

measurement base

Answer 8

Historical cost,market value, and present value

1. Historical cost:cash, prepaids, currt liab,contribt capital. land, Treas stk
2. Dep, amotz, or depleted HC: PP and E
3. -Market value:invst in mtkbl securit(stk and bonds)retired at exit price, are not intended to hold at maturity
4. NRV=AR and Inventories
5. Present value:non-current debt (bonds and long term notes

Question 9

Net Assets=

Answer 9

NA=Total assets- Total Liablities

Question 10

Disclosures

Answer 10

Aggregate amounts of paymts must be disclose for 5 years following the bal sheet date