The statement of financial position contains the following major sections: a. Current assets b. Long-term investments c. Property, plant and equipment d. Intangible assets e. Other assets f. Current liabilities g. Long-term liabilities h. Other liabilities i. Contributed capital j. Retained earnings k. Accumulated other comprehensive income Required: The following is a list of several in which section of the statement of financial position each of the accounts would be classified. account. If an account cannot be classified in any of the preceding sections, indicate with an X and explain. unts. Using the letters, A through indicate Place a check mark beside each item that is a contra- 1. Cash 2. Bonds payable (due in 8 years) 3. Machinery 4. Deficit 5. Unexpired insurance 6. Franchise (net) 7. Fund to retire preference shares 8. Current portion of mortgage payable 9. Accumulated depreciation 10. Copyrights (net) 11. Investment in held-to-maturity bonds 12. Allowance for doubtful accounts 13. Notes receivable (due in 3 years) 14. Property taxes payable 15. Deferred taxes payable 16. Premium on preference shares 17. Premium on bonds payable (due in 8 years) 18. Goods in process 19. Shares capital, P1 par 20. Land 21. Treasury stock (at cost)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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following is a list of several accounts. Using the letters, A through K, indicate in which section of the statement of financial position each of the accounts would be classified. Place a check mark beside each item that is a contra-account. If an account cannot be classified in any of the preceding sections, indicate with an X and explain.

The statement of financial position contains the following major sections:
a. Current assets
b. Long-term investments
c. Property, plant and equipment
d. Intangible assets
e. Other assets
f. Current liabilities
g. Long-term liabilities
h. Other liabilities
i. Contributed capital
j. Retained earnings
k. Accumulated other comprehensive income
Required:
The following is a list of several accounts. Using the letters, A through K, indicate
in which section of the statement of financial position each of the accounts
would be classified. Place a check mark beside each item that is a contra-
account. If an account cannot be classified in any of the preceding sections,
indicate with an X and explain.
1. Cash
2. Bonds payable (due in 8 years)
3. Machinery
4. Deficit
5. Unexpired insurance
6. Franchise (net)
7. Fund to retire preference shares
8. Current portion of mortgage payable
9. Accumulated depreciation
10.
(net)
11. Investment in held-to-maturity bonds
12. Allowance for doubtful accounts
13. Notes receivable (due in 3 years)
_14. Property taxes payable
15. Deferred taxes payable
16. Premium on preference shares
17. Premium on bonds payable (due in 8 years)
18. Goods in process
19. Shares capital, P1 par
20. Land
21. Treasury stock (at cost)

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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