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Part 1: Balance Sheet
Classify the list of financial elements within the different categories of a balance sheet.
| Categories | Elements |
| Short-term assets Long-term assets Short-term liabilities Long-term liabilities Owners equity | Cash Accounts payable Land Property, plant, and equipment Inventory Accounts receivable Paid in capital Retained earnings Notes payable Mortgage |
Then, explain in 2 or 3 paragraphs which sequence the four major financial statements need to be prepared for, and why.
Part 2: Statement of Cash Flow
Classify the list of financial elements within the different categories of a statement of cash flow.
| Categories | Elements |
| Operating activities Investing activities Financing activities | Net income-decreased for period Accounts receivable increase for period Accounts payable decrease for period Accruals decrease for period Depreciation-increases for period Stock issued Property purchased Bonds paid off Inventories increase for period Accrued liabilities decrease Notes payable increase for period Bonds redeemed for period Inventory-decreased for period |
Then, in a 1-page paper, explain whether or not each item would be considered a source or use of cash for the period in question.
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