Describe a typical balance sheet
A TYPICAL BALANCE SHEET
The balance sheet groups individual accounts by type (asset, liability, or shareholders' equity) and lists these accounts with their balances as of the balance sheet date. The date of the balance sheet appears at the top of the balance sheet. The asset and liability categories further group individual accounts by the expected timing of cash receipts (for assets) or cash payments (for liabilities). Common terminology describes items whose cash receipts or payments the firm expects will occur within one year as current assets or current liabilities, respectively. If the firm expects to collect or pay more than one year after the balance sheet date, the balance sheet classifies these as noncurrent assets and noncurrent liabilities, respectively. The balance sheet begins with a list of assets and then lists liabilities and shareholders' equity. Both U.S. GAAP and IFRS require firms to report balance sheet accounts for the prior year in addition to the current year. Under U.S. GAAP, assets and liabilities appear in order of decreasing closeness-to-cash; many firms that report under IFRS reverse this ordering.
You might also like to view...
The Fixed Asset System is similar to the expenditure cycle except
a. fixed asset transactions are non-routine and require special authorization and controls b. fixed assets are capitalized, not expensed c. both a and b d. none of the above
Effective capacity is influenced by ______.
a. the nature of the product or service b. the number of suppliers involved c. the lead time for manufacturing a product d. the company‘s market share for that product
For a homogeneous shopping product, a marketing manager should
A. understand that price sensitivity is likely to be low. B. provide enough exposure to facilitate price comparison. C. recognize that consumers see a lot of differences across alternatives. D. realize that consumers usually pay little attention to price. E. know that consumer purchases are typically unplanned and done quickly.
_____ are also sometimes called activity ratios.
A. Asset management ratios B. Capital budgeting ratios C. Leverage ratios D. Profitability ratios