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WorksheetsIntermediate Accounting Chapter 3 Review
Total questions: 60
Worksheet time: 10hrs 0mins
Match Each Balance Sheet Item to the Appropriate Classification Category:
Equipment
Property, Plant, and Equipment (PPE)
Current Liabilities
Current Assets - Contra
Investments
Long-Term Liabilities
Match Each Balance Sheet Item to the Appropriate Classification Category:
Accounts Payable
Property, Plant, and Equipment (PPE)
Current Liabilities
Current Assets - Contra
Investments
Long-Term Liabilities
Match Each Balance Sheet Item to the Appropriate Classification Category:
Allowance for Uncollectible Accounts
Property, Plant, and Equipment (PPE)
Current Liabilities
Current Assets - Contra
Investments
Long-Term Liabilities
Match Each Balance Sheet Item to the Appropriate Classification Category:
Land (Held for Investments)
Property, Plant, and Equipment (PPE)
Current Liabilities
Retained Earnings
Investments
Long-Term Liabilities
Match Each Balance Sheet Item to the Appropriate Classification Category:
Notes Payable (Due in 5 Years)
Property, Plant, and Equipment (PPE)
Current Liabilities
Retained Earnings
Investments
Long-Term Liabilities
Match Each Balance Sheet Item to the Appropriate Classification Category:
Deferred Revenue (For the Next 12 Months)
Property, Plant, and Equipment (PPE)
Current Liabilities
Retained Earnings
Investments
Long-Term Liabilities
Match Each Balance Sheet Item to the Appropriate Classification Category:
Notes Payable (due in 6 months)
Property, Plant, and Equipment (PPE)
Current Liabilities
Retained Earnings
Investments
Current Assets
Match Each Balance Sheet Item to the Appropriate Classification Category:
Accumulated Amount of Net Income Less Dividends
Property, Plant, and Equipment (PPE)
Current Liabilities
Retained Earnings
Investments
Current Assets
Match Each Balance Sheet Item to the Appropriate Classification Category:
Investment in XYZ Corporation (Long-Term)
Property, Plant, and Equipment (PPE)
Current Liabilities
Intangible Assets
Investments
Current Assets
Match Each Balance Sheet Item to the Appropriate Classification Category:
Inventory
Property, Plant, and Equipment (PPE)
Current Liabilities
Intangible Assets
Paid-In Capital
Current Assets
Match Each Balance Sheet Item to the Appropriate Classification Category:
Patent
Property, Plant, and Equipment (PPE)
Current Liabilities
Intangible Assets
Paid-In Capital
Current Assets
Match Each Balance Sheet Item to the Appropriate Classification Category:
Land (Used in Operations)
Property, Plant, and Equipment (PPE)
Current Liabilities
Intangible Assets
Paid-In Capital
Current Assets
Match Each Balance Sheet Item to the Appropriate Classification Category:
Accrued Liabilities (due in 6 months)
Property, Plant, and Equipment (PPE)
Current Liabilities
Intangible Assets
Paid-In Capital
Current Assets
Match Each Balance Sheet Item to the Appropriate Classification Category:
Prepaid Rent (For the Next 9 Months)
Property, Plant, and Equipment (PPE)
Current Liabilities
Intangible Assets
Paid-In Capital
Current Assets
Match Each Balance Sheet Item to the Appropriate Classification Category:
Common Stock
Property, Plant, and Equipment (PPE)
Current Liabilities
Intangible Assets
Paid-In Capital
Current Assets
Match Each Balance Sheet Item to the Appropriate Classification Category:
Building (Used in Operations)
Property, Plant, and Equipment (PPE)
Current Liabilities
Intangible Assets
Paid-In Capital
Current Assets
Match Each Balance Sheet Item to the Appropriate Classification Category:
Cash
Property, Plant, and Equipment (PPE)
Current Liabilities
Intangible Assets
Paid-In Capital
Current Assets
Match Each Balance Sheet Item to the Appropriate Classification Category:
Income Taxes Payable
Property, Plant, and Equipment (PPE)
Current Liabilities
Intangible Assets
Paid-In Capital
Current Assets
Match Each Balance Sheet Item to the Appropriate Classification Category:
Interest Payable (due in 3 months)
Property, Plant, and Equipment (PPE)
Current Liabilities
Intangible Assets
Long-Term Liabilities
Current Assets
Match Each Balance Sheet Item to the Appropriate Classification Category:
Franchise
Property, Plant, and Equipment (PPE)
Current Liabilities
Intangible Assets
Long-Term Liabilities
Current Assets
Match Each Balance Sheet Item to the Appropriate Classification Category:
Accumulated Depreciation
Property, Plant, and Equipment (PPE) - Contra
Current Liabilities
Intangible Assets
Long-Term Liabilities
Current Assets
Match Each Balance Sheet Item to the Appropriate Classification Category:
Prepaid Insurance (for next 6 months)
Property, Plant, and Equipment (PPE) - Contra
Current Liabilities
Intangible Assets
Long-Term Liabilities
Current Assets
Match Each Balance Sheet Item to the Appropriate Classification Category:
Bonds Payable (due in 10 years)
Property, Plant, and Equipment (PPE) - Contra
Current Liabilities
Investments
Long-Term Liabilities
Current Assets
Match Each Balance Sheet Item to the Appropriate Classification Category:
Current Maturities of Long-Term Debt
Property, Plant, and Equipment (PPE)
Current Liabilities
Investments
Intangible Assets
Current Assets
Match Each Balance Sheet Item to the Appropriate Classification Category:
Notes Payable (due in 3 months)
Property, Plant, and Equipment (PPE)
Current Liabilities
Investments
Intangible Assets
Current Assets
Match Each Balance Sheet Item to the Appropriate Classification Category:
Long-Term Receivables
Property, Plant, and Equipment (PPE)
Current Liabilities
Investments
Intangible Assets
Current Assets
Match Each Balance Sheet Item to the Appropriate Classification Category:
Unrestricted Cash
Property, Plant, and Equipment (PPE)
Current Liabilities
Investments
Intangible Assets
Current Assets
Match Each Balance Sheet Item to the Appropriate Classification Category:
Supplies
Property, Plant, and Equipment (PPE)
Current Liabilities
Investments
Intangible Assets
Current Assets
Match Each Balance Sheet Item to the Appropriate Classification Category:
Machinery
Property, Plant, and Equipment (PPE)
Current Liabilities
Investments
Intangible Assets
Current Assets
Match Each Balance Sheet Item to the Appropriate Classification Category:
Land (used in operations)
Property, Plant, and Equipment (PPE)
Current Liabilities
Investments
Intangible Assets
Current Assets
Match Each Balance Sheet Item to the Appropriate Classification Category:
Deferred Revenue (for next 4 months)
Paid-In Capital
Current Liabilities
Investments
Intangible Assets
Current Assets
Match Each Balance Sheet Item to the Appropriate Classification Category:
Copyrights
Paid-In Capital
Current Liabilities
Investments
Intangible Assets
Current Assets
Match Each Balance Sheet Item to the Appropriate Classification Category:
Common Stock
Paid-In Capital
Current Liabilities
Investments
Intangible Assets
Current Assets
Match Each Balance Sheet Item to the Appropriate Classification Category:
Land (held for speculation)
Paid-In Capital
Current Liabilities
Investments
Intangible Assets
Current Assets
Match Each Balance Sheet Item to the Appropriate Classification Category:
Cash Equivalents
Paid-In Capital
Current Liabilities
Investments
Intangible Assets
Current Assets
Match Each Balance Sheet Item to the Appropriate Classification Category:
Salaries Payable
Paid-In Capital
Current Liabilities
Investments
Intangible Assets
Current Assets
Definition: The financial statement that displays a firm's financial position on a particular date is the
Balance Sheet
Income Statement
Statement of Cash Flows
Comprehensive Income
The balance sheet provides useful information about a company's
Liquidity
Liability
Long-Term Solvency
Assets
Which of the following are limitations of the balance sheet? (Select all that apply.)
The balance sheet is heavily reliant on estimates rather than determinable amounts
The balance sheet reports the company's financial position over a period of time rather than on a particular date
Assets minus liabilities is not representative of the company's true market value
Assets minus liabilities is not representative of the company's true book value
Definition: The ability of a company to alter cash flows in order to take advantage of unexpected investment opportunities is known as what?
Liquidity
Financial Flexibility
Long-Term Solvency
A company's assets minus its liabilities shown on the balance sheet is referred to as its ______ value.
Fair
Market
Book
Liquidation
Assets minus liabilities, measured according to GAAP, is not likely to be representative of the _____ value of the entity.
Fair
Market
Book
Liquidation
True or False. The balance sheet presents all items at their fair value or market value.
False
True
True or False. The balance sheet will directly measure the company's market value.
False
True
True or False. For most firms, the operating cycle is one year or less.
False
True
The purpose of the balance sheet is to report:
A company's financial position during a period of time.
The difference between revenues and expenses on a specific date.
The difference between revenues and expenses during a period of time.
A company's financial position on a specific date.
How does classifying items on the balance sheet as current and noncurrent help financial statement users evaluate a company?
Solvency and Liquidity
Profitability and Future Earnings
Earnings and Marketability of the Stock
Potential Cash Flows.
What are the primary elements found on a balance sheet?
Assets, Revenues, and Liabilities
Revenues, Expenses, and Equity
Liabilities, Revenues, and Expenses
Assets, Liabilities, and Equity
In a balance sheet, how are assets classified?
Redeemable and Nonredeemable
Current and Noncurrent
Mature and Nonmature
High Risk and Low Risk
Current _____ include cash and other items that will be converted to cash or consumed within the coming year.
Liabilities
Assets
Equity
Inventory
The time period necessary to convert cash into raw materials, produce finished goods from those materials, sell the goods, and collect payment from accounts receivable is known as the ______ cycle.
Operating
Collection
Liquidity
Production
Current assets on the balance sheet are listed in the order of their ______.
Solvency
Equivalence
Liquidity
Values
What is the criterion to classify an investment as a cash equivalent versus a short-term investment?
It is a short-term investment with a maturity date of 12 months or less.
It is an investment in stock of another company that is held for active trading.
It is a highly liquid investment with a maturity date of 3 months or less from date of purchase.
It is a marketable security being held for sale.
Which of the following items is NOT considered a cash equivalents?
Cashier's checks and money orders
Money market funds that are quickly converted to cash
Commercial paper due in 1 month
U.S. Treasury bills due in 2 months
Which of the following items is classified as cash?
Treasury Bills
Bank Drafts
Investment in Stock of Another Company
Accounts Receivable
Bear Corp. has $100,000 in the bank, restricted for the repayment of a note payable maturing in 2 years. How should this $100,000 be classified in the financial statements?
As cash in the current asset section of the balance sheet.
As cash and cash equivalents on the balance sheet.
As restricted cash in the long-term section of the balance sheet.
As part of stockholders' equity on the balance sheet.
Which of the following investments would NOT be classified as a cash equivalent?
U.S. Treasury bills with a maturity of 90 days
Money market funds
Common stock held for trading purposes
Which of the following items should be classified as a short-term investment?
Prepaid Expenses
Investments to be sold in 12 months
Inventory held for sale in the normal course of business
Accounts Receivable
What is the criterion to classify an investment as a cash equivalent versus a short-term investment?
It is an investment in stock of another company that is held for active trading
It is a highly liquid investment with a maturity date of 3 months or less from date of purchase
It is a marketable security being held for sale
It is a short-term investment with a maturity date of 12 months or less
Investments in stock and debt securities of other corporations are included as ______ if the company has the ability and intent to sell them within the next 12 months.
Long-Term Liabilities
Long-Term Investments
Short-Term Investments
Short-Term Liabilities
