Intermediate Accounting w/ Annual Report; Connect Access Card
8th Edition
ISBN: 9781259546860
Author: J. David Spiceland
Publisher: McGraw-Hill Education
expand_more
expand_more
format_list_bulleted
Concept explainers
Videos
Textbook Question
Chapter 3, Problem 3.2BYP
Analysis Case 3–2
Current versus long- term classification
• LO3–2, LO3–3
The usefulness of the
Required:
1. Discuss the factors that determine whether an asset or liability should be classified as current or long-term in a balance sheet.
2. Identify six items that under different circumstances could be classified as either current or long-term. Indicate the factors that would determine the correct classification.
Expert Solution & Answer
Trending nowThis is a popular solution!
Students have asked these similar questions
question 10
choose the correct answer from the choices
13
Under what circumstances under PFRS 9 can an entity classify financial assets that meet the amortized cost criteria as at FVTPL?
Group of answer choices
Where the instrument is held to maturity.
Where the business model approach is adopted.
Where the financial asset passes the contractual cash flow characteristics test. Not sure
If doing so eliminates or reduces an accounting mismatch.
Question 12
Which of the following is a usefulness of the statement of financial position?
OA.
The use of judgments and estimates.
OB.
Omitted items.
OC.
Valuation of items at historical cost.
OD.
Evaluate capital structure. l
Chapter 3 Solutions
Intermediate Accounting w/ Annual Report; Connect Access Card
Ch. 3 - Prob. 3.1QCh. 3 - Prob. 3.2QCh. 3 - Define current assets and list the typical asset...Ch. 3 - Prob. 3.4QCh. 3 - Prob. 3.5QCh. 3 - Prob. 3.6QCh. 3 - Describe the common characteristics of assets...Ch. 3 - Prob. 3.8QCh. 3 - Prob. 3.9QCh. 3 - Define the terms paid-in-capital and retained...
Ch. 3 - Disclosure notes are an integral part of the...Ch. 3 - A summary of the companys significant accounting...Ch. 3 - Define a subsequent event.Ch. 3 - Prob. 3.14QCh. 3 - Prob. 3.15QCh. 3 - Prob. 3.16QCh. 3 - Prob. 3.17QCh. 3 - Show the calculation of the following solvency...Ch. 3 - Prob. 3.19QCh. 3 - Prob. 3.20QCh. 3 - (Based on Appendix 3) Segment reporting...Ch. 3 - Prob. 3.22QCh. 3 - Prob. 3.23QCh. 3 - Current versus long-term classification LO32,...Ch. 3 - Prob. 3.2BECh. 3 - Prob. 3.3BECh. 3 - Prob. 3.4BECh. 3 - Prob. 3.5BECh. 3 - Prob. 3.6BECh. 3 - Balance sheet preparation; missing elements LO32,...Ch. 3 - Financial statement disclosures LO34 For each of...Ch. 3 - Prob. 3.9BECh. 3 - Prob. 3.10BECh. 3 - Calculating ratios; solving for unknowns LO38 The...Ch. 3 - Prob. 3.1ECh. 3 - Prob. 3.2ECh. 3 - Prob. 3.3ECh. 3 - Prob. 3.4ECh. 3 - Prob. 3.5ECh. 3 - Prob. 3.6ECh. 3 - Prob. 3.7ECh. 3 - Prob. 3.8ECh. 3 - Prob. 3.9ECh. 3 - Financial statement disclosures LO34 The...Ch. 3 - Prob. 3.11ECh. 3 - Prob. 3.12ECh. 3 - Prob. 3.13ECh. 3 - FASB codification research LO32, LO34 Access the...Ch. 3 - Prob. 3.15ECh. 3 - Prob. 3.16ECh. 3 - Prob. 3.17ECh. 3 - Prob. 3.18ECh. 3 - Prob. 3.19ECh. 3 - Effect of management decisions on ratios LO38...Ch. 3 - Prob. 3.21ECh. 3 - Prob. 3.22ECh. 3 - Prob. 1CPACh. 3 - Prob. 2CPACh. 3 - Prob. 3CPACh. 3 - Prob. 4CPACh. 3 - Prob. 5CPACh. 3 - Prob. 6CPACh. 3 - Prob. 7CPACh. 3 - Prob. 8CPACh. 3 - Prob. 1CMACh. 3 - Prob. 2CMACh. 3 - Prob. 3CMACh. 3 - Balance sheet preparation LO32, LO33 Presented...Ch. 3 - Prob. 3.2PCh. 3 - Prob. 3.3PCh. 3 - Prob. 3.4PCh. 3 - Prob. 3.5PCh. 3 - Prob. 3.6PCh. 3 - Prob. 3.7PCh. 3 - Prob. 3.8PCh. 3 - Prob. 3.9PCh. 3 - Prob. 3.10PCh. 3 - Communication Case 31 Current versus long-term...Ch. 3 - Analysis Case 32 Current versus long- term...Ch. 3 - Prob. 3.4BYPCh. 3 - Prob. 3.5BYPCh. 3 - Prob. 3.6BYPCh. 3 - Prob. 3.7BYPCh. 3 - Prob. 3.8BYPCh. 3 - Prob. 3.9BYPCh. 3 - Prob. 3.11BYPCh. 3 - Analysis Case 3–14
Balance sheet information
LO3–2...Ch. 3 - Prob. 3.15BYPCh. 3 - Ethics Case 316 Segment reporting Appendix 3 You...
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- 14- Liquidity to tradable assets is a function of: a. Domestic Market b. Commodity Market c. Financial market d. International Marketarrow_forwardquestion 4 choose the correct answer from the choicesarrow_forwardQuestion: Classification of liabilities is based on the same principles as the classification of assets'. Do you agree with this? Why or why not? **********correct answer please *************arrow_forward
- Question 9 of 18 Trade receivables are preferably presented on the face of the statement of financial position Select the correct response: as a separate line item distinguished from other receivables as part of current assets, included and undistinguished from other assets as part of one line item, included and undistinguished from other receivables as part of one line item but distinguished from other receivables ( Previousarrow_forwardQuestion 15 Confirmations of individual accounts receivables balances directly with debtors will normally provide evidence regarding: Collectability Proper valuation of NRV. Existence of balances confirmed. Internal control over balances confirmedarrow_forwardExercise 16 Regard the problem of capital adequacy under the Solvency II regulation. By given assets and liabilities the insurer X has calculated quantiles of company's aggregated risk in accordance with the Solvency II methodology. The results are depicted below: Quantile's order Amount of risk (in $ 1000) 0,985 12 000 0,990 16 000 0,995 19 500 0,9995 22 500 X estimates that expected value of the total claims amounts to $ 10 million. Fill a table below and justify the figures you have inserted. Items In $1000 Total liabilities 23 000 Thereof: technical provisions and reserves ? other liabilities required shareholders' fund free assets ? {Hint: The quantile of order 0,995 defines the required amount of assets. Thus free assets equal to 3 500. The reserves consist of the expected value of claims and the risk premium, thus R=10 000+ 6%*(19 500-10 000), Finally, the required shareholder's fund is 8 930.}arrow_forward
- 4arrow_forwardChapter 10, Question 16: What are contingent liabilities? List three examples of contingent liabilities. When should contingent li-abilities be recorded in the accounts?arrow_forwardQuestion 14 of 30: ALCO is O Asset Liability Management committee O Asset Liability Coorporation O Asset Liability Colabration O Actual Lending Canons Operationarrow_forward
- 20 Which of the following expenses would most likely be reported as a separate line item on the statement of activities? Multiple Choice Interest on long-term debt. Inventory costs. Administrative expenses. Capital outlays.arrow_forward38Investing activities involvewhich of the following? a) borrowing and repaying of debt. b) sale of inventory. c) receipt of interest. d) investments in assets other than current assets.arrow_forwardt3arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
AccountingAccountingISBN:9781337272094Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.Publisher:Cengage Learning,
Financial & Managerial AccountingAccountingISBN:9781285866307Author:Carl Warren, James M. Reeve, Jonathan DuchacPublisher:Cengage Learning
Auditing: A Risk Based-Approach to Conducting a Q...AccountingISBN:9781305080577Author:Karla M Johnstone, Audrey A. Gramling, Larry E. RittenbergPublisher:South-Western College Pub
Accounting Information SystemsFinanceISBN:9781337552127Author:Ulric J. Gelinas, Richard B. Dull, Patrick Wheeler, Mary Callahan HillPublisher:Cengage Learning
Accounting
Accounting
ISBN:9781337272094
Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:Cengage Learning,
Financial & Managerial Accounting
Accounting
ISBN:9781285866307
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Cengage Learning
Auditing: A Risk Based-Approach to Conducting a Q...
Accounting
ISBN:9781305080577
Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:South-Western College Pub
Accounting Information Systems
Finance
ISBN:9781337552127
Author:Ulric J. Gelinas, Richard B. Dull, Patrick Wheeler, Mary Callahan Hill
Publisher:Cengage Learning
ACCOUNTING BASICS: Debits and Credits Explained; Author: Accounting Stuff;https://www.youtube.com/watch?v=VhwZ9t2b3Zk;License: Standard Youtube License