Assets are listed on the balance sheet in the order of their a. purchase date. b. adjustments. c. liquidity. d. balance.

Question

Want to see more full solutions like this?

Answer 1

Textbook Question

Chapter 4, Problem 1QC

Assets are listed on the balance sheet in the order of their

a. purchase date.

b. adjustments.

c. liquidity.

d. balance.

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.

Expert Solution & Answer

To determine

Balance sheet: This financial statement reports a company’s resources (assets) and claims of creditors (liabilities) and stockholders (stockholders’ equity) over those resources, on a specific date. The resources of the company are assets which include money contributed by stockholders and creditors. Hence, the main elements of the balance sheet are assets, liabilities, and stockholders’ equity.

To identify: The basis of order of listing assets on the balance sheet.

Answer to Problem 1QC

(c) liquidity

Explanation of Solution

Explanation for correct answer: The assets and liabilities of the balance sheet are listed based on the order of liquidity. The order of liquidity states that list of assets and liabilities that are quickly and easily available to convert into immediate cash are listed first and so on. In order of liquidity, the assets are listed as current assets, fixed assets, and intangible assets. However, the liabilities are listed as current liabilities and long-term liabilities.

Explanation for incorrect answers:

Option (a) is incorrect because the format of the balance sheet does not contain date column. The balance sheet only shows the items of assets, liabilities, and equity along with their amount.
Option (b) is incorrect because the balance sheet records the accounts balances of those assets and liabilities which are already adjusted and transferred to the adjusted trial balance.
Option (d) is incorrect because the assets and liabilities on the balance sheet are listed in order of their nature of occurrences. But, they not listed in order of their balance.

Conclusion

Hence, the correct answer option is (c)

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Students have asked these similar questions

Get accurate answer of this financial accounting question

The cost of goods sold is

Required information [The following information applies to the questions displayed below.] Kitimat Company manufactures winter hats that sell for $42 per unit. The following information pertains to the company's first year of operations in which it produced 40,100 units and sold 37,600 units. Variable costs per unit: Manufacturing: Direct materials Direct labour Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative expenses 16 $ 16 $ $ 1 $ 2 $401,000 $247,000 9. What would have been the company's variable costing operating income if it had produced and sold 37,600 units?

Answer 2

Textbook Question

Chapter 4, Problem 1QC

Assets are listed on the balance sheet in the order of their

a. purchase date.

b. adjustments.

c. liquidity.

d. balance.

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.

Expert Solution & Answer

To determine

Balance sheet: This financial statement reports a company’s resources (assets) and claims of creditors (liabilities) and stockholders (stockholders’ equity) over those resources, on a specific date. The resources of the company are assets which include money contributed by stockholders and creditors. Hence, the main elements of the balance sheet are assets, liabilities, and stockholders’ equity.

To identify: The basis of order of listing assets on the balance sheet.

Answer to Problem 1QC

(c) liquidity

Explanation of Solution

Explanation for correct answer: The assets and liabilities of the balance sheet are listed based on the order of liquidity. The order of liquidity states that list of assets and liabilities that are quickly and easily available to convert into immediate cash are listed first and so on. In order of liquidity, the assets are listed as current assets, fixed assets, and intangible assets. However, the liabilities are listed as current liabilities and long-term liabilities.

Explanation for incorrect answers:

Option (a) is incorrect because the format of the balance sheet does not contain date column. The balance sheet only shows the items of assets, liabilities, and equity along with their amount.
Option (b) is incorrect because the balance sheet records the accounts balances of those assets and liabilities which are already adjusted and transferred to the adjusted trial balance.
Option (d) is incorrect because the assets and liabilities on the balance sheet are listed in order of their nature of occurrences. But, they not listed in order of their balance.

Conclusion

Hence, the correct answer option is (c)

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Textbook Question

Chapter 4, Problem 1QC

Assets are listed on the balance sheet in the order of their

a. purchase date.

b. adjustments.

c. liquidity.

d. balance.

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.

Expert Solution & Answer

To determine

Balance sheet: This financial statement reports a company’s resources (assets) and claims of creditors (liabilities) and stockholders (stockholders’ equity) over those resources, on a specific date. The resources of the company are assets which include money contributed by stockholders and creditors. Hence, the main elements of the balance sheet are assets, liabilities, and stockholders’ equity.

To identify: The basis of order of listing assets on the balance sheet.

Answer to Problem 1QC

(c) liquidity

Explanation of Solution

Explanation for correct answer: The assets and liabilities of the balance sheet are listed based on the order of liquidity. The order of liquidity states that list of assets and liabilities that are quickly and easily available to convert into immediate cash are listed first and so on. In order of liquidity, the assets are listed as current assets, fixed assets, and intangible assets. However, the liabilities are listed as current liabilities and long-term liabilities.

Explanation for incorrect answers:

Option (a) is incorrect because the format of the balance sheet does not contain date column. The balance sheet only shows the items of assets, liabilities, and equity along with their amount.
Option (b) is incorrect because the balance sheet records the accounts balances of those assets and liabilities which are already adjusted and transferred to the adjusted trial balance.
Option (d) is incorrect because the assets and liabilities on the balance sheet are listed in order of their nature of occurrences. But, they not listed in order of their balance.

Conclusion

Hence, the correct answer option is (c)

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Textbook Question

Chapter 4, Problem 1QC

Assets are listed on the balance sheet in the order of their

a. purchase date.

b. adjustments.

c. liquidity.

d. balance.

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.

Expert Solution & Answer

To determine

Balance sheet: This financial statement reports a company’s resources (assets) and claims of creditors (liabilities) and stockholders (stockholders’ equity) over those resources, on a specific date. The resources of the company are assets which include money contributed by stockholders and creditors. Hence, the main elements of the balance sheet are assets, liabilities, and stockholders’ equity.

To identify: The basis of order of listing assets on the balance sheet.

Answer to Problem 1QC

(c) liquidity

Explanation of Solution

Explanation for correct answer: The assets and liabilities of the balance sheet are listed based on the order of liquidity. The order of liquidity states that list of assets and liabilities that are quickly and easily available to convert into immediate cash are listed first and so on. In order of liquidity, the assets are listed as current assets, fixed assets, and intangible assets. However, the liabilities are listed as current liabilities and long-term liabilities.

Explanation for incorrect answers:

Option (a) is incorrect because the format of the balance sheet does not contain date column. The balance sheet only shows the items of assets, liabilities, and equity along with their amount.
Option (b) is incorrect because the balance sheet records the accounts balances of those assets and liabilities which are already adjusted and transferred to the adjusted trial balance.
Option (d) is incorrect because the assets and liabilities on the balance sheet are listed in order of their nature of occurrences. But, they not listed in order of their balance.

Conclusion

Hence, the correct answer option is (c)

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Textbook Question

Answer 6

Textbook Question

Answer 7

Expert Solution & Answer

To determine

Balance sheet: This financial statement reports a company’s resources (assets) and claims of creditors (liabilities) and stockholders (stockholders’ equity) over those resources, on a specific date. The resources of the company are assets which include money contributed by stockholders and creditors. Hence, the main elements of the balance sheet are assets, liabilities, and stockholders’ equity.

To identify: The basis of order of listing assets on the balance sheet.

Answer to Problem 1QC

(c) liquidity

Explanation of Solution

Explanation for correct answer: The assets and liabilities of the balance sheet are listed based on the order of liquidity. The order of liquidity states that list of assets and liabilities that are quickly and easily available to convert into immediate cash are listed first and so on. In order of liquidity, the assets are listed as current assets, fixed assets, and intangible assets. However, the liabilities are listed as current liabilities and long-term liabilities.

Explanation for incorrect answers:

Option (a) is incorrect because the format of the balance sheet does not contain date column. The balance sheet only shows the items of assets, liabilities, and equity along with their amount.
Option (b) is incorrect because the balance sheet records the accounts balances of those assets and liabilities which are already adjusted and transferred to the adjusted trial balance.
Option (d) is incorrect because the assets and liabilities on the balance sheet are listed in order of their nature of occurrences. But, they not listed in order of their balance.

Conclusion

Hence, the correct answer option is (c)

Answer 8

Expert Solution & Answer

To determine

Balance sheet: This financial statement reports a company’s resources (assets) and claims of creditors (liabilities) and stockholders (stockholders’ equity) over those resources, on a specific date. The resources of the company are assets which include money contributed by stockholders and creditors. Hence, the main elements of the balance sheet are assets, liabilities, and stockholders’ equity.

To identify: The basis of order of listing assets on the balance sheet.

Answer to Problem 1QC

(c) liquidity

Explanation of Solution

Explanation for correct answer: The assets and liabilities of the balance sheet are listed based on the order of liquidity. The order of liquidity states that list of assets and liabilities that are quickly and easily available to convert into immediate cash are listed first and so on. In order of liquidity, the assets are listed as current assets, fixed assets, and intangible assets. However, the liabilities are listed as current liabilities and long-term liabilities.

Explanation for incorrect answers:

Option (a) is incorrect because the format of the balance sheet does not contain date column. The balance sheet only shows the items of assets, liabilities, and equity along with their amount.
Option (b) is incorrect because the balance sheet records the accounts balances of those assets and liabilities which are already adjusted and transferred to the adjusted trial balance.
Option (d) is incorrect because the assets and liabilities on the balance sheet are listed in order of their nature of occurrences. But, they not listed in order of their balance.

Conclusion

Hence, the correct answer option is (c)

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

To determine

Balance sheet: This financial statement reports a company’s resources (assets) and claims of creditors (liabilities) and stockholders (stockholders’ equity) over those resources, on a specific date. The resources of the company are assets which include money contributed by stockholders and creditors. Hence, the main elements of the balance sheet are assets, liabilities, and stockholders’ equity.

To identify: The basis of order of listing assets on the balance sheet.

Answer 12

Answer to Problem 1QC

(c) liquidity

Answer 13

Explanation of Solution

Explanation for correct answer: The assets and liabilities of the balance sheet are listed based on the order of liquidity. The order of liquidity states that list of assets and liabilities that are quickly and easily available to convert into immediate cash are listed first and so on. In order of liquidity, the assets are listed as current assets, fixed assets, and intangible assets. However, the liabilities are listed as current liabilities and long-term liabilities.

Explanation for incorrect answers:

Option (a) is incorrect because the format of the balance sheet does not contain date column. The balance sheet only shows the items of assets, liabilities, and equity along with their amount.
Option (b) is incorrect because the balance sheet records the accounts balances of those assets and liabilities which are already adjusted and transferred to the adjusted trial balance.
Option (d) is incorrect because the assets and liabilities on the balance sheet are listed in order of their nature of occurrences. But, they not listed in order of their balance.

Answer 14

Conclusion

Hence, the correct answer option is (c)

Answer 15

Ch. 4 - Assets are listed on the balance sheet in the...Ch. 4 - Which of the following accounts would be included...Ch. 4 - Which situation indicates a net loss within the...Ch. 4 - Which of the following accounts is not closed? a....Ch. 4 - What do closing entries accomplish? a. Zero out...Ch. 4 - Which of the following is not a closing entry?Ch. 4 - Which of the following accounts may appear on a...Ch. 4 - Which of the following steps of the accounting...Ch. 4 - Clean Water Softener Systems has Cash of 600,...Ch. 4 - Which of the following statements concerning...

Assets are listed on the balance sheet in the order of their a. purchase date. b. adjustments. c. liquidity. d. balance.

Concept explainers

Videos

Answer to Problem 1QC

Explanation of Solution

Want to see more full solutions like this?

Chapter 4 Solutions