Balance Sheet Classifications / Statement of Cash Flows Categories

Question 1

How would PREFERRED STOCK be classified in a Balance Sheet?

Answer 1

Capital Stock

Question 2

How would GOODWILL be classified in a Balance Sheet?

Answer 2

Long-term Investments

Question 3

How would SALARIES AND WAGES PAYABLE be classified in a Balance Sheet?

Answer 3

Current Liabilities

Question 4

How would ACCOUNTS PAYABLE be classified in a Balance Sheet?

Answer 4

Current Liabilities

Question 5

How would BUILDINGS be classified in a Balance Sheet?

Answer 5

Property, Plant, and Equipment

Question 6

How would EQUITY INVESTMENTS (TO BE SOLD WITHIN ONE YEAR) be classified in a Balance Sheet?

Answer 6

Long-term investments

Question 7

How would CURRENT MATURITY OF LONG-TERM DEBT be classified in a Balance Sheet?

Answer 7

Current Liabilities

Question 8

How would be PREMIUM ON BONDS PAYABLE be classified in a Balance Sheet?

Answer 8

Non-current Liabilities

Question 9

How would ALLOWANCE FOR DOUBTFUL ACCOUNTS be classified in a Balance Sheet?

Answer 9

Current Assets

Question 10

How would ACCOUNTS RECEIVABLE be classified in a Balance Sheet?

Answer 10

Current Assets

Question 11

How would NOTES PAYABLE (DUE NEXT YEAR) be classified in a Balance Sheet?

Answer 11

Current Liabilities

Question 12

How would SUPPLIES be classified in a Balance Sheet?

Answer 12

Current Assets

Question 13

How would COMMON STOCK be classified in a Balance Sheet?

Answer 13

Capital Stock

Question 14

How would LAND be classified in a Balance Sheet?

Answer 14

Property, Plant, and Equipment

Question 15

How would INVENTORY be classified in a Balance Sheet?

Answer 15

Current Assets

Question 16

How would PREPAID INSURANCE be classified in a Balance Sheet?

Answer 16

Current Assets

Question 17

How would BONDS PAYABLE be classified in a Balance Sheet?

Answer 17

Non-current Liabilities

Question 18

How would INCOME TAXES PAYABLE be classified in a Balance Sheet?

Answer 18

Current Liabilities

Question 19

Would PREPAID INSURANCE appear as a note to the financial statements OR be reported on the balance sheet?

Answer 19

Neither, it would just be reported directly on the balance sheet under Current Assets.

Question 20

Would STOCK OWNED IN ANOTHER COMPANY appear as a note to the financial statements OR be reported on the balance sheet?

Answer 20

Neither, it would just be reported directly on the balance sheet under Long-term Investments.

Question 21

Would UNEARNED SERVICE REVENUE appear as a note to the financial statements OR be reported on the balance sheet?

Answer 21

Neither, it would just be reported directly on the balance sheet under Current Liabilities.

Question 22

Would ADVANCES TO SUPPLIERS appear as a note to the financial statements OR be reported on the balance sheet?

Answer 22

Neither, it would just be reported directly on the balance sheet under Other Assets.

Question 23

Would UNEARNED RENT REVENUE appear as a note to the financial statements OR be reported on the balance sheet?

Answer 23

Neither, it would just be reported directly on the balance sheet under Current Liabilities.

Question 24

Would PREFERRED STOCK appear as a note to the financial statements OR be reported on the balance sheet?

Answer 24

Neither, it would just be reported directly on the balance sheet under Capital Stock.

Question 25

Would ADDITIONAL PAID-IN CAPITAL ON PREFERRED STOCK appear as a note to the financial statements OR be reported on the balance sheet?

Answer 25

Neither, it would just be reported directly on the balance sheet under Paid-in Capital in Excess of Par.

Question 26

Would COPYRIGHTS appear as a note to the financial statements OR be reported on the balance sheet?

Answer 26

Neither, it would just be reported directly on the balance sheet under Intangible Assets.

Question 27

Would PETTY CASH FUND appear as a note to the financial statements OR be reported on the balance sheet?

Answer 27

Neither, it would just be reported directly on the balance sheet under Current Assets.

Question 28

Would SALES TAXES PAYABLE appear as a note to the financial statements OR be reported on the balance sheet?

Answer 28

Neither, it would just be reported directly on the balance sheet under Current Liabilities.

Question 29

Would ACCRUED INTEREST ON NOTES RECEIVABLE appear as a note to the financial statements OR be reported on the balance sheet?

Answer 29

Neither, it would just be reported directly on the balance sheet under Current Assets.

Question 30

Would TWENTY-YEAR ISSUE OF BONDS PAYABLE THAT WILL MATURE WITHIN THE NEXT YEAR appear as a note to the financial statements OR be reported on the balance sheet?

Answer 30

Neither, it would just be reported directly on the balance sheet under Current Liabilities.

Question 31

Would MACHINERY RETIRED FROM USE AND HELD FOR SALE appear as a note to the financial statements OR be reported on the balance sheet?

Answer 31

Neither, it would just be reported directly on the balance sheet under Other Assets.

Question 32

Would FULLY DEPRECIATED MACHINE STILL IN USE appear as a note to the financial statements OR be reported on the balance sheet?

Answer 32

Neither, it would just be reported directly on the balance sheet under Property, Plant, and Equipment.

Question 33

Would ACCRUED INTEREST ON BONDS PAYABLE appear as a note to the financial statements OR be reported on the balance sheet?

Answer 33

Neither, it would just be reported directly on the balance sheet under Non-current Liabilities

Question 34

Would SALARIES THAT COMPANY BUDGET SHOWS WILL BE PAID TO EMPLOYEES WITHIN THE NEXT YEAR appear as a note to the financial statements OR be reported on the balance sheet?

Answer 34

It would NOT be reported on the balance sheet, as it is a budgetary entry.

Question 35

Would DISCOUNT ON BONDS PAYABLE appear as a note to the financial statements OR be reported on the balance sheet?

Answer 35

Neither, it would just be reported directly on the balance sheet under Non-current Liabilities.

Question 36

Would ACCUMULATED DEPRECIATION--BUILDINGS appear as a note to the financial statements OR be reported on the balance sheet?

Answer 36

Neither, it would just be reported directly on the balance sheet under Other Assets (as a contra account to Property, Plant, and Equipment).

Question 37

How would ISSUANCE OF COMMON STOCK be classified in the statement of cash flows?

Answer 37

Financing Activity

Question 38

How would PURCHASE OF LAND AND BUILDING be classified in the statement of cash flows?

Answer 38

Investing Activity

Question 39

How would REDEMPTION OF BONDS be classified in the statement of cash flows?

Answer 39

Financing Activity

Question 40

How would SALE OF EQUIPMENT be classified in the statement of cash flows?

Answer 40

Investing Activity

Question 41

How would DEPRECIATION OF MACHINERY be classified in the statement of cash flows?

Answer 41

Reported as Significant Non-cash Activity

Question 42

How would AMORTIZATION OF PATENT be classified in the statement of cash flows?

Answer 42

Reported as Significant Non-cash Activity

Question 43

How would ISSUANCE OF BONDS FOR PLANT ASSETS be classified in the statement of cash flows?

Answer 43

Financing Activity

Question 44

How would PAYMENT OF CASH DIVIDENDS be classified in the statement of cash flows?

Answer 44

Financing Activity

Question 45

How would EXCHANGE OF FURNITURE FOR OFFICE EQUIPMENT be classified in the statement of cash flows?

Answer 45

Reported as Significant Non-cash Activity

Question 46

How would PURCHASE OF TREASURY STOCK be classified in the statement of cash flows?

Answer 46

Financing Activity

Question 47

How would LOSS ON SALE OF EQUIPMENT be classified in the statement of cash flows?

Answer 47

Operating Activity--Deduct from Net Income

Question 48

How would INCREASE IN ACCOUNTS RECEIVABLE DURING THE YEAR be classified in the statement of cash flows?

Answer 48

Operating Activity--Deduct from Net Income

Question 49

How would DECREASE IN ACCOUNTS PAYABLE DURING THE YEAR be classified in the statement of cash flows?

Answer 49

Operating Activity--Add to Net Income