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12 Cards in this Set
- Front
- Back
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What are the limitations of the balance sheet? |
1) Most assets and liabilities are reported at historical cost. 2) Use of judgments and estimates. 3) Many items of financial value are omitted. |
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What are the major classifications in the balance sheet? (Assets) |
1) current assets 2) long-term investments 3) property, planet, and equipment 4) intangible assets 5) other assets |
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What are the major classifications in the balance sheet? liabilities |
Current liabilities Long-term debt Owners' (Stockholders') equity |
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Current assets |
cash/other assets a company expects to convert into cash, sell, or consume either in one year or in the operating cycle, whichever is longer |
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cash equivalents |
short-term highly liquid investments that mature within three months or less |
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What are the classifications in the balance sheet for the Stockholders' equity section? |
1) capital stock
2) additional paid-in capital 3) retained earnings 4) accumulated other comprehensive income 5) treasury stock 6) noncontrolling interested (minority interest) |
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What are the supplemental disclosures on the balance sheet? |
1) contingencies 2) accounting policies 3) contractual situations 4) fair values |
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What are the three questions the statement of cash flows answers? |
1) where did the cash come from? 2) what was the cash used for? 3) what was the change in the cash balance? |
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What will operating activities involve? |
Changes in current assets, changes in current liabilities, gains, losses |
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What will investing activities involve? |
cash entries involving long term assets
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What will financing activities involve?
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cash entries involving long term liabilities and equity
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what are the four steps in preparing the statements of cash flows? |
1) determine the net cash provided by (or used in) operating activities. 2)determine the net cash provided by (or used in) investing and financing activities. 3) Determine the change in cash during the period. 4) Reconcile the change in cash with the beginning and the ending cash balances. |
