Using the following balance sheet and income statement data, what is the total amount of working capital? Current assets $ 14,000 Net income $ 24,000 Current liabilities 8,000 Stockholders' equity 42,000 Average assets 80,000 Total liabilities 18,000 Total assets 60,000 Average common shares outstanding was 10,000 a. $ 2,000 b. $14,000 c. $ 4,000
In terms of the business balance sheet, business assets are categorized by the length of time they are usually held by the business and also by how easily they can be converted to cash. Cash is the most liquid asset because it already is in a cash form and can be used to make payments easily and quickly.
Which of the following is notcommonly classified as a current asset? Contributed capital I usually shown as which two accounts? PROFESSOR Kaiser. TAGS Accounting, Balance Sheet, Revenue, Generally Accepted Accounting Principles, AACSB Tag.2.1. Current assets on classified balance sheet. Current assets are usually listed in the order of liquidity starting with cash and cash equivalents. They are presented on the balance sheet after the current assets and may include the following classifications: fixed assets, intangible assets...1. Notes Payable due for payment within one year of the balance sheet date are usually classified as current liabilities. If a business incurs a loss in a financial year, it usually is entitled to use that loss in order to lower its taxable income in following years. The new ASU requires that all deferred tax assets and liabilities, along with any related valuation allowance, be classified as noncurrent on the balance sheet....balance sheet (components of balance sheet) are therefore classified in the following manner They are usually transformed into something else in the normal course of trade as one would Current assets are presented in the increasing order of liquidity. Liquidity measures the ability of an...
accounting questions and answers. In A Classified Balance Sheet, Current Assets Usually Are Listed In Order Of Their Liquidity. ... True False 2 Points QUESTION 21 Which Of The Following Accounts Would Not Appear In A Post-closing Trial Balance?Capital Expenditure and Depreciation. As a recap of the information outlined above, when an expenditure is capitalized, it is classified as an asset on the balance sheet. In order to move the asset off the balance sheet over time, it must be expensed and move through the income statement.