6.Which of the following are considered Current assets? A.Cash, Buildings, Accou
ID: 2743204 • Letter: 6
Question
6.Which of the following are considered Current assets?
A.Cash, Buildings, Accounts Receivable.
B.Cash, Accounts Payable, Inventory.
C.Cash, Accounts Receivable, Inventory.
D.,. Buildings, Land, Cash.
7 which of the following are considered Non-current assets?
A.Buildings, Land, Cash.
B.Buildings, Land, Equipment.
C.Land, Equipment, Accounts Receivable.
D.None of the above.
8.Assuming a company had net income for the current year, then Ending Retained Earnings is calculated as follows:
A Beginning Retained Earnings + Dividends.
B. Beginning Retained Earnings - Net income - Dividends.
C.Beginning Retained Earnings -Net income.
D.None of the above.
9.The multiple-step format provides several intermediate profit measures including:
A.Gross profit.
B.Operating profit.
C.Earnings before income tax.
D.All of the above.
10. A common size income statement is created by dividing each of the line items on the income statement for a year by
A.Net sales or net revenue.
B.Total expenses.
C.Stockholder Equity.
D.None of the above.
Explanation / Answer
6. Opyion B and C both.because Current assets donot include fixed assets auch as land and building hence option 1 and 2 are not valid .
7.Option A,,C include current assets such as cash ,Accounts receivables,therefore these options are not Valid .But Option B inclues only Fixed Assets and no current assets hence Option B is correct.
8.
The calculation is:
+ Beginning retained earnings
+ Net income during the period
- Dividends paid
= Ending retained earnings
Option D is correct.
9.All of the above.
10.None of the above.
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