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Business LibreTexts

4.2: Concept Self-Check

  • Page ID
    20086
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    • Contributed by Henry Dauderis and David Annand
    • Athabasca University
    • Sourced from Lyryx Learning

    Use the following as a self-check while working through Chapter 4.

    1. What shapes and limits an accountant's measurement of wealth?
    2. Are financial statements primarily intended for internal or external users?
    3. What is a classified balance sheet?
    4. What are the classifications within a classified balance sheet?
    5. What are current assets?
    6. What are non-current assets?
    7. What are current liabilities?
    8. What are long-term liabilities?
    9. What is the current-portion of a long-term liability?
    10. What is the purpose and content of the notes to the financial statements?
    11. What is the purpose and content of the auditor's report?
    12. What is the purpose and content of the report that describes management's responsibility for financial statements?

    NOTE: The purpose of these questions is to prepare you for the concepts introduced in the chapter. Your goal should be to answer each of these questions as you read through the chapter. If, when you complete the chapter, you are unable to answer one or more the Concept Self-Check questions, go back through the content to find the answer(s). Solutions are not provided to these questions.