Question
1. The following information is given for Sego Company: Cash $50,000 Inventory $45,000 Land 75,000 Accumulated Depreciation 40,000 Plant & Equipment 150,000 Accounts Payable 60,000
1. The following information is given for Sego Company:
Cash | $50,000 | Inventory | $45,000 |
Land | 75,000 | Accumulated Depreciation | 40,000 |
Plant & Equipment | 150,000 | Accounts Payable | 60,000 |
What are the companys current assets?
a. $220,000
b. $155,000
c. $130,000
d. $ 95,000
2. Starship Inc.'s gross profit ratio increased from 36.5% in 2015 to 48.6% in 2016. What is the trend in this change?
a. An upward trend
b. A downward trend
c. It depends on whether net sales increased or decreased during the period.
d. Trends cannot be determined without the dollar amount of the increase provided.
1. A balance sheet provides information at one specific point in time, while the income statement, statement of retained earnings and statement of cash flows provide information on activities that occur over a period of time.
a. True
b. False
2. (1/2 point) Current assets, other than cash, are expected to be sold or consumed are during a company's normal operating cycle or within one year.
a. True
b. False
3. (1/2 point) Obligations that will be paid during several the next years must be reported as current liabilities on a classified balance sheet.
a. True
b. False
4. (1/2 point)The excess of current assets over current liabilities is referred to as working capital.
a. True
b. False
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