A Corporation's Balance Sheet Is Usually Divided into Three Sections

question 57

Essay

A corporation's balance sheet is usually divided into three sections with various subclassifications reported within each group in an informative manner.Listed below are some typical subclassifications.
$\begin{array}{llcc} \text {Contributed capital } & \text {Other assets } \\\text {Current assets } & \text { Other liabilities } \\\text { Current liabilities } & \text { Property, plant, \& equipment} \\\text { Intangible assets } & \text { Retained earnings } \\\text { Long-term investments } & \text { Accumulated other comprehensive income } \\\text {Long-term liabilities } &\\\end{array}$
Required:
Identify each of the three balance sheet sections and list the subclassifications within each section in the appropriate order.

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Definitions:

Deferred Tax Liability

A tax obligation that a company will have to pay in the future, arising out of current transactions that are recognized in the financial statements before they are taxable.

Tax Rate Change

An adjustment in the percentage at which an individual or corporation is taxed, affecting the computation of tax liabilities and net income.

Temporary Difference

A difference between the book value and tax value of an asset or liability that will result in taxable or deductible amounts in future years.

Accrued Product Warranty

Liabilities recognized for future costs related to warranty claims on products sold that have not yet been serviced.