Balance sheet current assets balance sheet current

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Unformatted text preview: major classifications of the balance sheet. Balance Sheet – “Current Assets” Balance Sheet – “Current Assets” Receivables Illustration 5-6 Balance Sheet Presentation of Receivables Chapter 5-15 LO 2 Identify the major classifications of the balance sheet. Balance Sheet – “Current Assets” Balance Sheet – “Current Assets” Inventories Company discloses: Basis of valuation (e.g., lower­of­cost­or­market). Method of pricing (e.g., FIFO or LIFO). Illustration 5-7 Chapter 5-16 LO 2 Identify the major classifications of the balance sheet. Balance Sheet – “Current Assets” Balance Sheet – “Current Assets” Prepaid Expenses Payment of cash, that is recorded as an asset because service or benefit will be received in the future. Cash Payment BEFORE Expense Recorded Prepayments often occur in regard to: insurance supplies advertising Chapter 5-17 rent maintenance on equipment LO 2 Identify the major classifications of the balance sheet. Balance Sheet – “Current Assets” Balance Sheet – “Current Assets” Prepaid Expenses Illustr...
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