Balance Sheet

On Your Test

Financial Accounting

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