28. The form of the balance sheet that lists assets on the left-hand side of the

Question

28. The form of the balance sheet that lists assets on the left-hand side of the statement with the liabilities and owners' equity on the right-hand side is referred to as the

a. account form.

b. report form.

c. comparative form.

d. horizontal form.

29. The correct order to present current assets is

a. cash, inventories, prepaid items, accounts receivable.

b. cash, inventories, accounts receivable, prepaid items.

c. cash, accounts receivable, prepaid items, inventories.

d. cash, accounts receivable, inventories, prepaid items.

30. Which of the following would not be considered an element of working capital?

a. Investment securities (current)

b. Organization costs

c. Accrued interest on notes payable

d. Work in process inventories

31. Which of the following statements best describes a subsequent event?

a. A subsequent event affects only subsequent reporting periods.

b. A subsequent event may occur any time after financial statements are issued.

c. A subsequent event is, in some cases, reflected in the statements of the preceding period

d. A subsequent event may have to disclosed in a footnote to the financial statements and in the independent auditor's report.

32. On a multiple-step income statement, gains or losses on sale of equipment would be shown

a. before gross profit on sales.

b. after gross profit on sales but before income from continuing operations.

c. after income from continuing operations but before income from extraordinary items.

d. after income before extraordinary items but before net income.

Explanation / Answer

28.option a

It is called account format and annother format is report format

29.option b

Cash,inventories,account receivables and perpaid items is the order

30.option b

Organization costs is an revenue item as working capital is currwnt assets- current liabilities ,it is not included

31.option d

32.option b

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