1. If a transaction gives the firm ownership of something that that has future value, the item would be reported in which section of the balance sheet?
2. If a transaction creates an obligation to delivery economic resources to an outside party in the future, the item would be reported in which section of the balance sheet?
3. How are the assets and liabilities valued on the balance sheet? That is, what is the methods used to assign values to assets and liabilities on the Balance Sheet?
4. When a company rents a warehouse by paying for the first six month’s rent in advance, the effect on the accounting equation on the day of payment would be to adjust which accounts?
5. When an investor pays cash into a business to become a part owner, the effect on the accounting equation for the business will be to adjust which accounts?
6. When a company borrows money from a bank to be repaid in over time, the effect on the accounting equation for the company will be to adjust which accounts?
7. For each of the following accounts, indicate the section and subsection of the Balance sheet where the firm would report it.
   1. Cash –
   2. Accrued liabilities –
   3. Long-term investments –
   4. Land –
   5. Notes payable (due over the next 5 years) –
   6. Deferred revenues (expected to be earned in less than a year) –
   7. Common Stock –
   8. Inventory –
   9. Treasury stock –
   10. Prepaid rent –
   11. Retained earnings –
   12. Taxes payable –
   13. Accounts payable –
   14. Short–term investments –

Answer rating: 100% (QA)

1 If a transaction gives the firm ownership of something that that has future value the item would b... View the full answer