Balance Sheet
On Your Test
Financial Accounting
Balance Sheet
On Your Test
You will be expected to know the following for multiple choice concept questions.
Almost all questions will relate to these things:
Which accounts are reported under:
Current assets
Long term liquid assets
Property, Plant, and Equipment
Intangible Assets
Current Liabilities
Long term Liabilities
Stockholder’s equity
The definition of each type of common balance sheet account
What type of account a given transaction will impact
The balance sheet is presented in the order of liquidity and is historical cost
The definition of goodwill and when it is reported
The difference in current and non-current/long term
The definition of the operating cycle
You will be asked to do the following on problems and multiple-choice problems that require calculations. It boils down to this:
Prepare a balance sheet in proper format given a list of accounts.
Determine the total for a given category of assets or liabilities