Ch. 18 Flashcards
1
Q
Assets on a Balance Sheet
A
- Assets are placed on the balance sheet according to their liquidity (liquidity - How easily can the asset be converted to cash)
2
Q
Current Assets
A
- These assets will be converted into cash or used up within one year
- Cash
- Marketable Securities
- A/R
- Inventory
- Prepaids
3
Q
Property, Plant, & Equipment (PP & E)
A
- Tangible assets - can touch and feel
- Used in Business
- Long-term assets
- Shown on Balance sheet
- Exception: Land is not depreciated
4
Q
Examples of PP & E
A
- Land
- Buildings
- Equipment
- Capital Leases
5
Q
Intangible Assets
A
- Intangible assets lack physical substance
- Patents - shown on balance sheet - net of amortization
6
Q
Examples of Intangible Assets
A
- Patents
- Goodwill - (reviewed annual for a decrease in the value
7
Q
Current Liabilities
A
- Liability order based on the timing of payment
- Define - Economic sacrifice of resources within one year
8
Q
Current Liability Examples
A
- Accounts Payable
- Salaries Payable
- Taxes Payable
- Notes Payable (short - term)
- Unearned Revenue
- Accrued Liabilities
- Customer Deposits (Likely returned to the customer)
- Bank overdrafts (general rule)
9
Q
Long-term Liabilities
A
- Future economic sacrifice of resources beyond the next year
- Can become current liabilities
10
Q
Long-term Liability Examples
A
- Notes Payable
- Bonds Payable
11
Q
Stockholder’s Equity: Contributed Capital
A
- Value provided by the owners
12
Q
Stockholder’s Equity Examples
A
- Common Stock
- Preferred Stock
- Additional Paid-in Capital
