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Accountants Classify Various Items on the Balance Sheet or the Income

Question 115

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Accountants classify various items on the balance sheet or the income statement in one of the following ways:
Using the abbreviations above, indicate the classification of each of the following items:

Premises:
Interest revenue
Cash on hand
Common stock issued by the corporation
Employee taxes payable
Factory
Unsettled damage suit against the corporation, probability and amount of settlement uncertain
Trucks used for deliveries
__________ prepaid insurance
Note payable, due in 7 years
Commissions earned by the sales staff
Responses:
Current liabilities
Retained earnings
Noncurrent liabilities
Income statement item (revenue or expense)
Current assets
Item generally not appearing on a balance sheet
Contributed capital
Noncurrent assets

Correct Answer:

Interest revenue
Cash on hand
Common stock issued by the corporation
Employee taxes payable
Factory
Unsettled damage suit against the corporation, probability and amount of settlement uncertain
Trucks used for deliveries
__________ prepaid insurance
Note payable, due in 7 years
Commissions earned by the sales staff
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