Balance Sheet Flashcards
Learn what goes where on the balance sheet
What is Cash (unrestricted and restricted)?
Current Assets - Cash consists of (1) coin and currency on hand, (2) demand deposits (checking accounts), (3) time deposits (savings accounts), and (4) near-cash assets (e.g., deposits in transit or commercial paper, also known as negotiable instruments).
Temporary term investments (trading securities)
Current Assets
Receivables (NRV)
Current Assets
NRV (Net Realizable Value)
amount you expect to receive within 1 year or the accounting cycle
Tax and Other Refunds
Receivables (Current Assets)
Receivables from affiliates and employees and overpayments to creditors
Receivables (Current Assets)
Accounts receivable, net of allowance for bad debts
Receivables (Current Assets)
Current portions of installments receivable and notes receivable
Receivables (Current Assets)
Inventories (LCM)
Current Assets
LCM
Lower of Cost of Market
Raw Materials
Inventories (Current Assets)
Work-in-progress
Inventories (Current Assets)
Finished goods
Inventories (Current Assets)
Prepaid Expenses (insurance and rent)
Current Assets
Current Deferred Taxes
Current Assets
Nonmarketable securities (equity method securities)
Noncurrent Investments - non current assets
Long-term investments in marketable debt securities (available for sale and held to maturity)
Noncurrent Investments - non current assets
Land, buildings and improvements (Book value Less accumulated depreciation)
Property, Plant & Equipment (Fixed Assets) - non current assets
Machinery and equipment, leased assets (Book value Less accumulated depreciation)
Property, Plant & Equipment (Fixed Assets) - non current assets
Goodwill (test for impairment annually)
Intangible Assets (net of amortization) - non current assets
Other identifiable intangibles such as patents, trademarks and copyrights
Intangible Assets (net of amortization) - non current assets
Customer Deposits
Other Assets - non current assets - Customer deposits and unearned rents represent amounts already received and included in cash in exchange for goods or services that have not yet been delivered. These items are liabilities, not assets.
Noncurrent receivables (including portions of installments receivable and notes receivable)
Other Assets - non current assets
Noncurrent deferred tax asset
Other Assets - non current assets
Equipment to be disposed of
Other Assets - non current assets
Short-term notes payable
Current Liabilities
Accounts Payable
Current Liabilities
Accrued expenses such as salaries and wages, interest and utilities (things incurred but not yet paid)
Current Liabilities
Estimated current liabilities such as warranty expense
Current Liabilities
Taxes payable such as income taxes, collected sales taxes and withheld payroll taxes
Current Liabilities
Unearned revenues including rents or fees collected in advance
Current Liabilities - Customer deposits and unearned rents represent amounts already received and included in cash in exchange for goods or services that have not yet been delivered. These items are liabilities, not assets.
Dividends Payable
Current Liabilities
Current portion of long-term debt such as noncurrent portions of capital lease obligations and notes and loans payable
Current Liabilities
Notes payable net of current portion
Noncurrent Liabilities
Bonds payable
Noncurrent Liabilities
Noncurrent deferred tax liability
Noncurrent Liabilities
Other noncurrent liabilities such as noncurrent portions of capital lease obligations and warranty obligations
Noncurrent Liabilities
Deferred liabilities such as liabilities under pension plans, post-employment plans and post-retirement plans
Noncurrent Liabilities
Contributed Capital (APIC)
- Preferred Stock
- Common Stock (net of T/S at par)
- Additional paid-in capital (APIC)
Stockholder’s equity
Noncontrolling interest (minority interest)
Stockholders equity
Earned capital
- Retained earnings (appropriated and unappropriated)
- Accumulated other comprehensive income (OCI) - (DENT)
Stockholders equity
Subtract from stockholders equity treasury stock at cost
Stockholders equity
Land held for resale goes in which section on the balance sheet?
Inventories - Current Assets
Accounting Equation
Total Assets = Total Liabilities + Stockholders Equity
A=L+E
What is a trial balance?
A trial balance sheet is a report that lists the ending balances of each account in the chart of accounts in balance sheet order.
Where on the balance sheet are bond-sinking funds accounted for?
Net of cash if specified or as non current asset
What is a cash equivalent?
Cash equivalents are short-term, highly liquid investments/securities. Normally, only investments with original maturities of 3 months or less qualify (e.g. Commercial paper maturing in two months)
What is a compensating balance?
The minimum balance that must be maintained in a bank account, used to offset the cost incurred by a bank to set up a business loan. The compensating balance is not available for company use, and may need to be disclosed in the borrower’s notes to the financial statements
