Question

acct hw help

An intangible asset derives its value from the rights and privileges it provides the owner. is converted into a tangible asset during the operating cycle. is worthless because it has no physical substance. cannot be classified on the balance sheet because it lacks physical substance. QUESTION 11 Which of the following is not a liability? Unearned Service Revenue Notes Payable Prepaid Insurance Interest Payable QUESTION 12 5 0 0 0 0 An investment by the stockholders in a business increases liabilities and stockholders' equity. assets and liabilities. assets and stockholders' equity. assets only

Answer 1

Answer 10.

Your Required answer is option A i.e. Derives its value from the rights and privilages it provides the owner.

Explanation:

Intengible Assets has its own value which helps an organisation to earn premium profit.

Answer 11.

Your Required answer is option C i.e. Prepaid Insurance

Explanation:

Prepaid Insuarance is a Current Assets which means amount has been paid in advance.

Answer 12.

Your Required answer is option C i.e. Assets and Stockholder's Equity

Explanation:

When stockholder's made any investment in business then it increases Assets i.e. Cash and Stockholders's Equity i.e. Common Stock

Answer 7.

Your Required answer is option B i.e. Balance Sheet

Explanation:

Balance sheet gives details of all liabilities and stockholders equity therefore this would be bette statement to check whether assets are financed or not.

Since Income statement will give you datails of Revenue and Expenses only.

Retainded earning only show the balance of Dividend, net income and retained earnings therefore this is also not suitable for desired purpose.

Cash Flow Statement only show inflow or outlfow of cash therefore this is also not suitable for desired purpose.

Answer 8.

Your Required answer is option a i.e. Current Assets

Explanation:

Short-term Investment is classified as Current Assets in Balance Sheet.

Answer 9.

Your Required answer is option C i.e. Dividend account results in decrease in retained earnings and stockholdre's equity and therefore has a debit balance.

Explanation:

Dividend account is similer as expense account therefore it has Debit balalne however it is not showed in Income statement instead it is reduced from Retained earnings which results decrease in retained earnings and decrease in stockholder's equity as well.

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