21-25

21. Which of the following would not be classified as a current asser? A. Marketable securities B. Plant property and equipment C. Prepaid expenses D. Inventory 22. Which of the following would represent a use of funds and, indirectly, a reduction in cash balances? A. An increase in inventories B. A decrease in marketable securities C. An increase in accounts payable D. The sale of new bonds by the firm 23. Reinvested funds into retained eanings theoretically belong to A. bond holders. B. common stockholders C. employees. D. All of the options 24. Asset accounts on the balance sheet are listed in order of A. liquidity B. profitability C. dollar amount. D. importance. 25. Which account represents the cumulative earnings of the firm since the firm started, minus dividends paid? A. Paid-in capital B. Common stock C. Retained earnings D. Accumulated depreciation