14. Accumulated depreciation amounts are shown as deductions from the cost of building and equipment accounts accounts receivable account. b, accounts payable account. prepaid insurance account. d. 15. A formal statement of the assets, liabilities, and owner's equity of a business at a specified date is known as a(n) balance sheet. b, c. statement of owner's equity. statement of cash flows 16. Cash and all other assets that may be reasonably expected to be converted to cash or consumed within one year or the normal operating cycle of the business are classified as a. temporary investments. b. marketable securities current assets. d. investments 17. Assets that are used for several years in the operation of a business are called marketable securities. b. current assets. C. investments. property, plant, and equipment. 18. The following information was taken from the financial statements of Ashley's Linens: Total current assets Property, plant, and equipment 6,000 Current liabilities Long-term liabilities Owner's equity Beginning inventory Ending inventory $53,000 21,000 4,000 34,000 31,000 33,000 152,000 Cost of goods sold Net income 42,000 The working capital of Ashley's Linens is a. $32,000. b. $33,000. c. $34,000 d. $38,000. 19. The ability of a business to meet its current obligations may be determined by the b. C. d. current ratio. inventory turnover. working ratio. accounts receivable turnover