Complete/answer the following questions.

1.List and describe the major classifications of the balance sheet.

2.Explain each of the following limitations of the balance sheet.

a.Many items that are of financial value are omitted.

b.Judgments and estimates are used.

c.Current fair value is not reported.

3.Define and explain how the balance sheet is useful for analyzing all of the following

a.liquidity.

b.solvency.

c.financial flexibility.

4.Identify and describe the major sections of a statement of cash flows.

5.The basis for classifying assets as current or noncurrent is conversion to cash within the operating cycle or one year, whichever is longer. Explain what this means and provide an example.

Explain why the following statement (while different) also accurately defines current versus noncurrent assets.

The basis for classifying assets as current or noncurrent is the period of time normally required by the accounting entity to convert cash invested in inventory back into cash, or 12 months, whichever is longer.

6.Explain how each of the following describes long-term liabilities:

a.obligations not expected to be liquidated within the operating cycle.

b.obligations payable at some date beyond the operating cycle.

c.deferred income taxes and most lease obligations.

7.The stockholders' equity section is usually divided into what three parts? List and define each of the three parts.