Reading 18: Understanding Balance Sheets

Which of the following is the defining characteristic of an asset on the balance sheet?

The residual interest in a firm's assets after deducting liabilities is best described as:

A balance sheet that separately reports current and non-current assets and liabilities is known as a:

Under IFRS, firms may choose a liquidity-based format over a classified balance sheet if:

Current assets are defined as assets expected to be converted into cash or used up within:

Which of the following is considered a current liability?

Working capital is calculated as:

Accounts receivable are reported on the balance sheet at:

The allowance for doubtful accounts is classified as a:

Under IFRS, inventories are reported at the lower of cost or:

Under U.S. GAAP, for companies using LIFO, market value for inventory valuation is generally equal to:

Which of the following costs is treated as a period cost rather than a product cost included in inventory?

Prepaid expenses are classified as assets because:

Unearned revenue is classified as a:

Under the cost model, Property, Plant, and Equipment (PP&E) is reported at:

Under IFRS, which model allows PP&E to be reported at fair value?

For PP&E impairment testing under IFRS, an asset is impaired if its carrying value exceeds its:

Investment property under IFRS is defined as property held to generate:

Deferred tax assets are created when:

Which of the following is an example of an identifiable intangible asset?

Goodwill is created on the balance sheet when:

Under U.S. GAAP, research and development costs are generally:

Under IFRS, development costs can be capitalized if:

If a firm acquires a target for 15 million EUR and the fair value of the target's identifiable net assets is 12 million EUR, the goodwill reported is:

Intangible assets with indefinite lives are:

Under U.S. GAAP, debt securities held with the intent to keep until maturity are classified as:

Held-to-maturity securities are reported on the balance sheet at:

Unrealized gains and losses on trading securities are reported in:

Unrealized gains and losses on available-for-sale securities under U.S. GAAP are reported in:

Which category of financial assets under IFRS corresponds to 'Available-for-sale' under U.S. GAAP?

Financial liabilities (like bonds payable) not issued at face value are usually reported at:

Contributed capital refers to:

Treasury stock represents:

Which of the following items is included in accumulated other comprehensive income (AOCI)?

Authorized shares are defined as:

A vertical common-size balance sheet expresses each item as a percentage of:

The current ratio is calculated as:

Which ratio excludes inventory from the numerator?

Solvency ratios measure a firm's ability to:

The financial leverage ratio is calculated as:

If a firm has 200,000 in current assets and 100,000 in current liabilities, its current ratio is:

Retained earnings are:

Noncontrolling interest represents:

Deferred tax liabilities are created when:

Which statement regarding the Statement of Changes in Stockholders' Equity is correct?

A limitation of balance sheet ratio analysis is that:

If a firm has issued 100,000 shares and repurchased 10,000 as treasury stock, the number of outstanding shares is:

Which of the following is an intangible asset with an indefinite life?

Comprehensive income is defined as:

Mandatorily redeemable preferred stock is classified as: