Chapter 3, Problem 3.8E

Distinguish between the revenue/expense and the asset/liability approaches to setting financial reportingstandards

Characterize accrued liabilities and liabilities from advance collection and describe when and how they should be recorded.

Prepare a classified balance sheet in proper form.

Provide a data analysis of the liability part of the financial statement.

Below are items that may appear on the balance sheet.                 Required:Match each item with its appropriate classification.

Define current assets. What basis is used for ordering individual items within the current assets section? How do current liabilities differ from long-term liabilities?

What is an asset and liability per the IASB framework definition for the preparation and presentation of financial statement?

Outline the recognition criteria for the following elements of financial statements:   Assets   Liabilities   Income   Expenses

Common categories of a classified balance sheet include Current Assets, Long-Term Investments, Plant Assets, Intangible Assets Current LiabilitiesLong-Term Liabilities, and EquityFor each of the following items, Identify the balance sheet category where the item typically would best appearIf an item does not appear on the balance sheetIndicate that instead.