Practice prompt · Q:statement-presentation-comprehensive-income-and-disclosure/account-classification-sort-001

Sort accounts onto a classified balance sheet

Tests whether the learner places accounts by element and by the current criterion rather than by name.

Updated Aug 18, 2026 Review due Nov 18, 2026

Practice

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Choose a response, then check the answer and explanation.

A company has a twelve-month operating cycle. It reports Prepaid Rent of 9,000 covering the next six months, Equipment of 210,000, and Retained Earnings of 88,000. It also reports Accounts Payable of 34,000 and Bonds Payable of 150,000 maturing in six years.

Every line goes to an element first and then across the current line. The test is what the item will do within a year, not what kind of thing it is.

Choose the best answer. a Current assets 9,000; noncurrent assets 210,000; current liabilities 34,000; noncurrent liabilities 150,000; equity 88,000. b Current assets 219,000; current liabilities 34,000; noncurrent liabilities 150,000; equity 88,000. c Current assets 9,000; noncurrent assets 210,000; current liabilities 184,000; equity 88,000. d Current assets 9,000; noncurrent assets 210,000; current liabilities 34,000; noncurrent liabilities 150,000; equity 97,000.

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Answer: a

Choice a. The criterion is consumption or settlement within the year or the operating cycle, whichever is longer.