P 313 Required Answer the following multiple-choice questions: a. Which of the following accounts would not appear on a conventional balance sheet? 1. Accounts receivable 2. Accounts payable 3. Patents 4. Gain from sale of land 5. Common stock b. Current assets typically include all but which of the following assets? 1. Cash restricted for the retirement of bonds 2. Unrestricted cash 3. Marketable securities c. The Current Liabilities section of the balance sheet should include 1. Land. 2. Cash surrender value of life insurance. 3. Accounts payable. 4. Bonds payable. 5. Preferred stock. d. Inventories are the balance of goods on hand. In a manufacturing firm, they include all but which of the following? 1. Raw materials 2. Work in process 3. Finished goods 4. Supplies 5. Construction in process e. Which of the following accounts would not usually be classified as a current liability? 1. Accounts payable 2. Wages payable 3. Unearned rent income 4. Bonds payable 5. Taxes payable f. For the issuing firm, redeemable preferred stock should be classified where for analysis purposes? 1. Marketable security 2. Long-term investment 3. Intangible 4. Liabilities 5. Sharcholders' equity g. Which of the following accounts would not be classified as an intangible? 1. Goodwill 2. Patent 3. Accounts receivable 4. Trademarks 5. Franchises h. Which of the following is not true relating to intangibles? 1. Research and development usually represents a significant intangible on the financial statements. 2. Goodwill arises from the acquisition of a business for a sum greater than the physical asset value. 3. Purchased goodwill is not amortized but is subject to annual impairment reviews. 4. The global treatment of goodwill varies significantly. 5. Intangibles are usually amortized over their useful lives or legal lives, whichever is shorter. i. Growth Company had total assets of $100,000 and total liabilities of $60,000. What is the balance of the stockholders' equity? 1. $0 2. $40,000 3. $60,000 4. $100,000 5. None of the above