Provide brief but complete responses.

5A. Typically, items in the balance sheet are grouped by whether they are current or long-term.

1. Discuss the factors that determine whether an asset or liability should be classified as current or long-term in a balance sheet.
2. Name six items that could be classified as current or long-term in the balance sheet. State what factors that determine the correct classification for each.

5B. What effect does intraperiod tax allocation have reported net income? Discuss how you cam to this conclusion.

5C. Discuss the reasoning why the items in Other Comprehensive Income (what are they?) are placed there and not on the Income Statement.

5D. What kinds of questions about future cash flows do investors and creditors try answer with the income statement?

5E. What is the basis for treating an item on the income statement as either operating or nonoperating? Why do we care about this?

5F. Why do investors and creditors care about earnings quality? How do earnings management practices affect the quality of earnings?

5G. Does earnings management always produce higher income? Explain.