classifying financial statement accounts the balance sheet or in 242621

Classifying financial statement accounts The balance sheet or income statement classifies various items in one of the 1ollowng ways:

CA—Current assets

NA—Noncurrent assets

CL—Current liabilities

NL—Noncurrent liabilities

CC—Contributed capital

RE—Retained earnings

NI—Income statement item (revenue or expense)

X—Item generally does not appear on a balance sheet or an income statement

Using the abbreviations in the previous list, indicate the classification of each of the following items under US GAAP and IFRS. If the classifications differ between U.S. GAAP and IFRS, indicate what that difference would be.

a. Factory.

b. Interest revenue.

c. Treasury shares repurchased by a corporation.

d. Research and development expenditures

e. Automobiles used by sales staff.

f. Cash on hand.

g. Promise to a vendor to buy inventory from it next period.

h. Commissions earned by sales staff

i Supplies inventory.

j. Note payable, due in three months.

k. Increase in fair value of land held.

l. Dividends declared.

m. Income taxes owed to state or city government

n. Note payable, due in six years.

o. The portion of the note payable in part n that is due next year.

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