Question

10. On a classified balance sheet, companies usually list current assets a in alphabetical order b with the largest dollar amounts first. c. in the order in which they are expected to be converted into cash. d. in the order of acquisition 11. These are selected account balances on December 31, 2022 Land $150,000 Land (held for future use) 225,000 Buildings 1,200,000 Inventory 300,000 Equipment 675,000 Furniture 150,000 Accumulated Depreciation 450.000 What is the total amount of property, plant, and equipment that will appear on the balance sheet? a. $2.250.000 b. S1,950,000 c. $2,700.000 d. $1.725,000 12. Ratios that measure the income or operating success of a company for a given period of time are a. liquidity ratios. b. profitability ratios. C. solvency ratios. d. trending ratios 13. N3 Corporation has assets of $4,200,000, common stock of $1,092,000, and retained earnings of $665,000. What are the creditors' claims on their assets? a $3.773.000 b. $1,757.000 c. $2,443,000 d $4,627,000 14. Earnings per share is a a. profitability ratio b. liquidity ratio. c. solvency ratio. d. trending ratio 15. The concept that a business has a reasonable expectation of remaining in business for the foreseeable future is called the a economic entity assumption. b. monetary unit assumption. c. periodicity assumption. d. going concern assumption 16. It is assumed that the activities of Ford Motor company can be distinguished from those of General Motors because of the a. going concern assumption.

Answer 1

Solution 10:

On a classified balance sheet, companies usually list current assets "In the order in which they are expected to be converted in to cash"

Hence option c is correct.

Solution 11:

Amount of property, plant and equipment that would appear on the balance sheet = Land + Land (held for further use) + Buildings + Equipment + Furniture - Accumulated depreciation

= $150,000 + $225,000 + $1,200,000 + $675,000 + $150,000 - $450,000 = $1,950,000

Hence option b is correct.

Solution 12:

Ratios that measures the income or operating success of a company for a given period of time are "Profitability ratios"

Hence option b is correct.

Solution 13:

Creditor claims on assets = total assets - common stock - Retained earnings = $4,200,000 - $1,092,000 - $665,000 = $2,443,000

Hence option c is correct.

Solution 14:

Earning per share is a profitability ratio.

Hence option a is correct.

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