Bus 225 Chapter 3 Study Guide Rated A+

Classified Balance Sheet {Ans: prepared with various sections, subsections, and captions}Deferred Expenses {Ans: initially recorded as an asset but become expenses over time}What are liabilities classified under? {Ans: Current Liabilities Long-Term Liabilities}What does the statement of cash flows include? {Ans: It lists all cash flows from operating, investing and financing activities}Operating Income Equation {Ans: Fees Earned - Operating Expenses}Which basis of accounting is required by GAAP? {Ans: accrual basis}