14. Answer (a) Cost Of Building & Equipment Accounts
REASON :
In the given Options Except (a) , remaining are not Tangible/Intangible Fixed Assets Which we are normally calculate depreciation .
So, depreciation on Fixed Assets which accumulated every year , we have to be shown as deduction under (a) Cost Of Building & Equipment Accounts (In the given case).
15. Answer(a) Balance Sheet
REASONS :
1.(a).Balance Sheet
It is a Statement of Assets ,Liabilities & Equity. Every company wants to know the Financial Position on a single(Specified) Date, normally end of the financial year.So, it is to find the Position on a specified (Point of time)date instead/ irrespective of specified Period.
Income Statement is a statement of Revenue & Expenses for the Specified Period Usually a Financial Year Instea.d of Specified Date.
Statement of owner's Equity is normally used in Individual Business(proprietorship) for the Known changes in Capital of Business.
Statement of Cash Flows is normally used to know the changes in funds (Either Inflow or Outflow) by Bifurcating the company's activities into Operating, Investing & Financial Activities.
16.(c) Current Assets.
REASONS:
1.(c) Current Assets
Current Assets includes Cash,Cash Equivalence (Marketable Securities & Temporary investments),Stock( Expected to be converted/Consumed into cash within year),Debtors ,Prepaid Expenses etc.
In the given Options,
Temporary investments means which normally converted in to cash in the very near future(based on company requirement or for exploitation of interest.
Marketable Securities means which normally converted in to cash with in one Year.
Investments are those which not traded with in 1year are classified long term Investments.
So, Currents assets is the legible answer for the given Question .
17. Answer (d) Property, Plant & Equipment.
REASON :
In the given options except (d),remaining all are not used in operation of business for several years.
Because Property,Plant & equipment are used in business for the manufacturing of products till the winding of company/Close of business.
18 Answer (a)$32,000
REASON :
Working Capital = Current Assets - Current Liabilities
For Current Assets whatever included is discussed above .So, Let's have check.
For Current liabilities includes Trade Payables , Accrued income taxes , Accrued liabilities Etc.
In the given Question , Current Assets includes Inventory also. So, We have no need to calculate separately.
Working Capital = 53000 - 21000 = $ 32000
19.Answer (a) Current Ratio
Current Ratio = Current Assets / Current Liabilities
Current Ratio is referred as a liquidity ratio which measures the company has enough resources or not to meet it's short term obligations.
Thank You.
14. Accumulated depreciation amounts are shown as deductions from the cost of building and equipment accounts...
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Classify each of the following accounts with their balance sheet classifications Accumulated Depreciation Equipment Short-term investments Merchandise Inventory Land L. Dawn, Capital 1. Current Assets Salaries Payable 2. Current Liabilties Prepaid Insurance 3. Long Term Investments Accounts receivable 4. Long Term Liabilties 5. Property Plant and Equipment Patents 6. Intangible Assets Accounts receivable 4. Long Term Liabilties 5. Property Plant and Equipment Patents 6. Intangible Assets Cash 7. Owner's Equity Notes Payable (due in 2 years) Accounts payable Equipment Supplies...
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$10,960 26,410 32,990 180,000 Accounts Payable Accounts Receivable Accumulated Depreciation - Equipment Common Stock Cash Equipment Land Prepaid Insurance Prepaid Rent Retained Earnings Salaries Payable Supplies Unearned Fees 95,350 127,000 6,140 3,840 39,860 4,270 660 3,180 Prepare a classified balance sheet that includes the correct balance for Cash. Dynamic Weight Loss Co. Balance Sheet June 30, 2018 Assets Current assets: Cash Accounts receivable Supplies Prepaid insurance Prepaid rent Total current assets Property, plant, and equipment: Land Equipment Accumulated depreciation -...