Classifying Financial Statement Accounts

question 91

Essay

Classifying financial statement accounts.The balance sheet or income statement classifies various items in one of the following ways:
CA-Current assets
NA-Noncurrent assets
CL-Current liabilities
NL-Noncurrent liabilities
CC-Contributed capital
RE-Retained earnings
NI-Income statement item (revenue or expense)
X-Item generally does not appear on a balance sheet or an income statement

Using the abbreviations in the previous list, indicate the classification of each of the following items under U.S.GAAP and IFRS.If the classifications differ between U.S.GAAP and IFRS, indicate what that difference would be.

a.Interest revenue.
b.Factory.
c.Treasury shares repurchased by a corporation.
d.Research and development expenditures.
e.Automobiles used by sales staff.
f.Cash on hand.
g.Promise to a vendor to buy inventory from it next period.
h.Commissions earned by sales staff.
i.Supplies inventory.
j.Note payable, due in six months.
k.Increase in fair value of land held.
l.Income taxes owed to state or city government.
m.Note payable, due in ten years.
n.The portion of the note payable in part n that is due next year.
o.Dividends declared.

Recognize the significance of clear, empathetic communication in maintaining employee morale and public goodwill during negative situations.

Understand the concept of attention and its limitations in consumer behavior.

Grasp the impact of advertisement characteristics (e.g., size, novelty) on consumer attention and sales.

Appreciate how repeated exposure to the same stimuli can lead to adaptation or habituation.

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Definitions:

Altered to Read

The modification or editing of text or documents such that the content is changed to convey a different message or information.

Holder in Due Course

A holder in due course is a party in possession of a negotiable instrument, such as a check, who has taken it under certain conditions, protecting them from prior claims and defenses.

Consumer Credit Contract

An agreement between a borrower and a lender in which the borrower receives something of value now and agrees to repay the lender at a future date, usually with interest.

Defective Furniture

Furniture that has manufacturing flaws, impairing its usability, safety, or aesthetic value.