Accounting 2036 Chapter 6 Questions
and Answers 2026 Updated.
Balance Sheet - Answer Financial statement that reports the types and the monetary
amounts of a company's assets, liabilities, and owner's equity on a specific date.
Classified Balance Sheet - Answer This balance sheet shows subtotals for assets, liabilities,
and owner's equity in related groupings.
Assets - Answer Company's economic resource.
Current Assets - Answer Cash and other assets the company expects to convert into cash,
sell up, or use within a year. This includes cash, marketable securities, receivables, inventory,
and prepaid items.
Long-Term Investments - Answer Items such as N/R , gov bonds, and capital stocks of
corporations. Company must intend to hold them for over one year.
Property and Equipment - Answer Physical, long term assets used in the company.
Book Cost - Answer Value of an assets at its original cost minus depreciation.
Liabilities - Answer Economic obligations of a company
Current Liabilities - Answer Debts a company expects to pay within one year. For example,
A/P and S/P, unearned revenues, short term notes, interest payable.
Non-Current Liabilites - Answer Debts a company expects to pay in over one year.
Owner's Equity - Answer Owner's current investment in the assets of the company.
Liquidity - Answer Measure of how quickly a company can turn an asset into cash to pay it's
bills.
and Answers 2026 Updated.
Balance Sheet - Answer Financial statement that reports the types and the monetary
amounts of a company's assets, liabilities, and owner's equity on a specific date.
Classified Balance Sheet - Answer This balance sheet shows subtotals for assets, liabilities,
and owner's equity in related groupings.
Assets - Answer Company's economic resource.
Current Assets - Answer Cash and other assets the company expects to convert into cash,
sell up, or use within a year. This includes cash, marketable securities, receivables, inventory,
and prepaid items.
Long-Term Investments - Answer Items such as N/R , gov bonds, and capital stocks of
corporations. Company must intend to hold them for over one year.
Property and Equipment - Answer Physical, long term assets used in the company.
Book Cost - Answer Value of an assets at its original cost minus depreciation.
Liabilities - Answer Economic obligations of a company
Current Liabilities - Answer Debts a company expects to pay within one year. For example,
A/P and S/P, unearned revenues, short term notes, interest payable.
Non-Current Liabilites - Answer Debts a company expects to pay in over one year.
Owner's Equity - Answer Owner's current investment in the assets of the company.
Liquidity - Answer Measure of how quickly a company can turn an asset into cash to pay it's
bills.
