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Please help me answer questions 1-4 on accounting. 1. Which company is most likely to show the highest percentage of current assets on its balance
Please help me answer questions 1-4 on accounting.
1. Which company is most likely to show the highest percentage of current assets on its balance sheet? Explain. A. A jewelry firm B. A mining company C. An automaker D. An internet provider E. A pharmaceutical manufacturer Reason: A jewelry firm because they do not have large values on quantity in their current assets. 2. If you are to compare the gross profits of firms in different industries, which one is not suitable for this comparison? Explain. A. A jewelry firm B. A mining company C. An automaker D. An internet provider E. A pharmaceutical manufacturer Reason: Because an internet provider is a service rather than a product like a jewelry firm. every financial period? Briefly explain the reason. 3. Which account zeros out at the end A. Revenue B. Retained Earnings C. Cash D. Loan E. Common stock Reason: Revenue zeros out at the end of every financial period because the account measures how much revenue is earned and the expenses incurred during that period. 4. Which of the following calculations is NOT correct? Briefly explain the reason. A. Adding four quarters' revenues in a year to calculate the yearly revenue. B. Adding four quarters' incomes in a year to calculate the yearly income. C. Adding two consecutive years' cost of sales to calculate a two-year cost of sales. D. Adding four quarters' total assets to calculate the total assets of the year. E. Adding four quarters' net cash flows to calculate the total net cash flows of a year. ReasonStep by Step Solution
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