| Classified balance sheet | Balance sheet that presents assets and liabilities in relevant subgroups, including current and noncurrent classifications.
|
 |
|
|
| Current assets | Cash and other assets expected to be sold, collected, or used within one year or the company's operating cycle, whichever is longer.
|
|
|
|
| Current liabilities | Obligations due to be paid or settled within one year or the company's operating cycle, whichever is longer.
|
|
|
|
| General and administrative expenses | Expenses that support the operating activities of a business.
|
|
|
|
| Intangible assets | Long-term assets (resources) used to produce or sell products or services; usually lack physical form and have uncertain benefits.
|
|
|
|
| Long-term investments | Long-term assets not used in operating activities such as notes receivable and investments in stocks and bonds.
|
|
|
|
| Long-term liabilities | Obligations not due to be paid within one year or the operating cycle, whichever is longer.
|
|
|
|
| Multiple-step income statement | Income statement format that shows subtotals between sales and net income, categorizes expenses, and often reports the details of net sales and expenses.
|
|
|
|
| Operating cycle | Normal time between paying cash for merchandise or employee services and receiving cash from customers.
|
|
|
|
| Reversing entries | Optional entries recorded at the beginning of a period that prepare the accounts for the usual journal entries as if adjusting entries had not occurred in the prior period.
|
|
|
|
| Selling expenses | Expenses of promoting sales, such as displaying and advertising merchandise, making sales, and delivering goods to customers.
|
|
|
|
| Single-step income statement | Income statement format that includes cost of goods sold as an expense and shows only one subtotal for total expenses.
|
|
|
|
| Unclassified balance sheet | Balance sheet that broadly groups assets, liabilities, and equity accounts.
|