Which of the following is the equation form of long-term liabilities?
Question 1 options:
cash + marketable securities + accounts receivable + prepaid expenses + inventory
cash + marketable securities + accounts receivable – prepaid expenses + inventory
investments + fixed assets – accumulated depreciation + intangible assets
notes payable + accounts payable + other items payable + dividends payable + the current portion of long-term debt
long-term debt + pension fund liabilities + long-term lease obligations
SaveQuestion 2 (1 point)
Which of the following is the most liquid of all current assets?
Question 2 options:
Marketable security
Accounts receivables
Cash
Notes receivable
Prepaid expense
SaveQuestion 3 (1 point)
Which of the following is a cash inflow from operating activities?
Question 3 options:
Interest from securities
Sale of debt or equity
Collection of the principle of loans
Sale of securities
Issue debt instruments
SaveQuestion 4 (1 point)
Which of the following is the equation form of net profit?
Question 4 options:
income – COGS
gross profit – operating expenses
liabilities + owner’s equity
operating profit – other revenues and expenses
EBT – taxes
SaveQuestion 5 (1 point)
Which of the following is a disadvantage of using a cash-based accounting system?
Question 5 options:
It may be misleading with respect to understanding a company’s actual cash position.
It can distort measure of the profitability of a business.
It needs greater bookkeeping requirements.
It is a more sophisticated approach to accounting.
It provides an accurate indication of the profitability of a business.
SaveQuestion 6 (1 point)
Which of the following is the equation form of assets?
Question 6 options:
income – COGS
gross profit – operating expenses
liabilities + owner’s equity
operating profit – other revenues and expenses
EBT – taxes
SaveQuestion 7 (1 point)
Which of the following defines accrual accounting system?
Question 7 options:
Measures the cost of replacing an employee.
Provides the appropriate information to the external community.
Records transactions when money is either received or spent.
Provides information to the management of a business and aids in internal controls.
Records transactions when they occur.
