Intro to Ch 5
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 | A. | inventory back into cash, or 12 months, whichever is longer. | | B. | tangible fixed assets back into cash, or 12 months, whichever is longer. | | C. | inventory back into cash, or 12 months, whichever is shorter. | | D. | receivables back into cash, or 12 months, whichever is longer. |
The net assets of a business are equal to | A. | current assets minus current liabilities. | | B. | total assets plus total liabilities. | | C. | total assets minus total stockholders' equity. | | D. | none of these. |
A general description of the depreciation methods applicable to major classes of depreci-able assets | A. | is not essential to a fair presentation of financial position. | | B. | should be included in corporate financial statements or notes thereto. | | C. | is needed in financial reporting when company policy differs from income tax policy. | | D. | is not a current practice in financial reporting. |
Houghton Company has the following items: common stock, $720,000; treasury stock, $85,000; deferred taxes, $100,000 and retained earnings, $313,000. What total amount should Houghton Company report as stockholders' equity? | A. | $1,118,000. | | B. | $848,000. | | C. | $1,048,000. | | D. | $948,000. | The stockholders' equity section is usually divided into what three parts? | A. | Preferred stock, common stock, retained earnings | | B. | Capital stock, additional paid-in capital, retained earnings | | C. | Capital stock, appropriated retained earnings, unappropriated retained earnings | | D. | Preferred stock, common stock, treasury stock |
Which of the following balance sheet classifications would normally require the greatest amount of supplementary disclosure? | A. | Plant assets | | B. | Current assets | | C. |
The net assets of a business are equal to | A. | current assets minus current liabilities. | | B. | total assets plus total liabilities. | | C. | total assets minus total stockholders' equity. | | D. | none of these. |
A general description of the depreciation methods applicable to major classes of depreci-able assets | A. | is not essential to a fair presentation of financial position. | | B. | should be included in corporate financial statements or notes thereto. | | C. | is needed in financial reporting when company policy differs from income tax policy. | | D. | is not a current practice in financial reporting. |
Houghton Company has the following items: common stock, $720,000; treasury stock, $85,000; deferred taxes, $100,000 and retained earnings, $313,000. What total amount should Houghton Company report as stockholders' equity? | A. | $1,118,000. | | B. | $848,000. | | C. | $1,048,000. | | D. | $948,000. | The stockholders' equity section is usually divided into what three parts? | A. | Preferred stock, common stock, retained earnings | | B. | Capital stock, additional paid-in capital, retained earnings | | C. | Capital stock, appropriated retained earnings, unappropriated retained earnings | | D. | Preferred stock, common stock, treasury stock |
Which of the following balance sheet classifications would normally require the greatest amount of supplementary disclosure? | A. | Plant assets | | B. | Current assets | | C. |