The characteristics of current assets are (Choose the INCORRECT answer) a) They are converted to cash within a year b) They consist of short and long term financial assets and intangible fixed assets c) They are considered liquid assets d) They are used in the daily operations of the firm
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The characteristics of current assets are (Choose the INCORRECT answer)
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a) They are converted to cash within a year
b) They consist of short and long term financial assets and intangible fixed assets
c) They are considered liquid assets
d) They are used in the daily operations of the firm
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Solved in 2 steps
- What is unique about reporting current assets? Current assets are reported after they are converted into cash Current assets are reported in the order of their liquidity Current assets are reported net of depreciation Current assets are reported from highest to lowestThe following information can be obtained by examining a company's balance sheet and income statement information: a. Increases in current asset account balances, other than cash. b. Decreases in current asset account balances, other than cash. c. Cash outflows to purchase long-term assets. d. Decreases in current liability account balances. e. Cash outflows to repay long-term debt. f. Gains recognized on the sale of long-term assets. g. Noncash expenses (e.g., depreciation). h. Cash outflows to purchase treasury stock. i. Increases in current liability account balances. j. Cash inflows from the sale of long-term assets. k. Cash inflows from the issue of common stock. I. Cash outflows to pay dividends. m. Losses incurred from the sale of long-term assets. n. Cash inflows from the issue of long-term debt. Required For each item, indicate whether it would be used in the computation of net cash flows from operating, investing, or financing activities. Also, indicate whether the item would…Matching Type Put a Check for the answers. Statement of financial position. Current assets Liabilities Current liabilities. Obligations expected to be liquidated through use of current assets. Statement showing financial condition at a point in time. Probable future outflows of economic benefits Resources expected to be converted to cash in one year or the operating cycle, whichever is longer
- Which one of the following options is correct about current assets Select one: a. Current assets are long term assets b. Current assets are not recorded inside the balance sheet rather in the notes section. c. Account receivable & cash are current assets d. Current assets are depreciable.The purchase of a long-term asset is classified in the statement of cash flows as a(n) a. Operating activity. b. Investing activity. c. Financing activity. d. Noncash activity.Referring to the balance sheet and extra information, what is the value of the total assets?Round the answer to the nearest dollar
- Which of the following statements is true? A. Current liabilities are debts expected to be paid out of current assets within the next year. B. Property, plant, and equipment are classified as intangible assets on the statement of financial position. C. Current assets are resources of a company which might include cash and copyrights. D. Accumulated depreciation is the amount of depreciation on the income statement for the current year.Liquid assets is determined by Select one: a. Current assets - current liabilities O b. Current liabilities- Bank overdraft c. Current assets +stock+ prepaid expenses O d. Current assets-stock-Prepaid expensesTo be considered an asset (in accounting), a resource must_ Select one or more: 0 (Select all that apply.) a. be something the company owns or has a right to b. be convertible into cash within one year (or the operating cycle), whichever is longer c. provide a future benefit to the company d. be used by the company in its current operating activities
- Match the words to the definitions. Solvency Accounts Receivable Balance Sheet Noncurrent Assets Income Statement Retained Earnings Noncurrent Liabilities. Liquidity Current Assets Cash Flow Statement ✓ [Choose ] A forecast of the amount and timing of future cash inflows and outflows over some period of time. A summary of the revenues and expenses of a business over a given period of time. When net worth is greater than zero, or assets are greater than liabilities on the balance sheet. The ability to meet the day-to-day cash needs of the firm. Profits that are not paid out in dividends but are reinvested in the firm itself. Summarizes a firm's financial position at a given point in time and lists the firm's assets, liabilities, and net worth. Debts that others owe the business, usually arising from previous credit sales. Something the firms owns or uses that will not turn into cash within the next accounting period. Either cash or an items that will become cash in the next accounting…The most closely comparable operational activities include The phrase "long-term asset" refers to anything that will last a long time.Current assets and current liabilities are assets and obligations that are now in existence.responsibilities for the long term and shareholders' equitythe payment of dividends and the purchase of treasury stockWhich of the following would be subtracted from net income when determining cash flows from operating activities? A. Decreade in prepaid insurance B. Depreciation expense C. Increase in accounts payable D. Gain on the sale of a Depreciation asset