1.

Balance sheets contain current asset and current liability categories to allow evaluation of a company's__________

Group of answer choices

Liquidity

Profitability

Investment yield

Dividend paying capacity

2.

Cerner Inc. shows net worth (stockholder equity) on its balance sheet of $100 million. However, the aggregate value of of Cerner's equity based on traded price of its common stock is significantly higher than $100 million. Which of the following is not a likely reason for this?

Group of answer choices

under-valuation of liabilities on the balance sheet

assets on the balance sheet reported at historical cost

intangible assets under-valued on the balance sheet

intangible assets not included on the balance sheet

3.

Stanley Company has an inventory of metal parts. Stanley originally purchased the parts for $18 per unit from a supplier. Stanley could sell the parts to retail customers for $22 per unit. Stanley checked with a supplier and found the current cost to purchase the parts would be $19 per unit. What is the replacement cost under these circumstances?

Group of answer choices

$19 per unit

$22 per unit

$18 per unit

$20 per unit

4.

Stanley Company has an inventory of metal parts. Stanley estimates that the parts can be sold for $20 per unit, but due to a light layer of dust and rust each unit would need buffing at a cost of $2 per unit. Eighteen dollars per unit is an example of

Group of answer choices

net realizable value

fair value

historical cost

replacement cost