The net assets of a business are equal to a current assets minus current liabilities. b. total assets plus total liabilities C. total assets minus total stockholders' equity. d. none of these answer choices are correct The correct order to present current assets is a. cash, accounts receivable, prepaid items, inventories b. cash, accounts receivable, inventories, prepaid items. cash, inventories, accounts receivable prepaid items d. cash, inventories, prepaid items, accounts receivable The basis for classifying assets as current or noncurrent is conversion to cash within a. the accounting cycle or one year, whichever is shorter. b. the operating cycle or one year, whichever is longer the accounting cycle or one year, whichever is longer. d the operating cycle or one year, whichever is shorter. Maso Company recorded journal entries for the issuance of common stock for $200,000 the payment of $55.000 on accounts payable, and the payment of salaries expense of $105,000. What net effect do these entries have on stockholders equity? a. Increase of $200,000 b. Increase of $135,000 Increase of $95.000 d. Increase of $30,000 Mune Company recorded journal entries for the declaration of $250,000 of dividends, the $160,000 increase in accounts receivable for services rendered, and the purchase of equipment for $105,000. What net effect do these entries have on stockholders equity? a. Decrease of $355,000 b. Decrease of $195,000 c. Decrease of $90,000 d. Increase of $55,000 12 Brown Company's account balances at December 31, 2017 for Accounts Receivable and the related Allowance for Doubtful Accounts are 5920,000 debit and $2,100 credit respectively. From an aging of accounts receivablet is estimated that $39,000 of the December 31 receivables will be uncollectible. The necessary adjusting entry would include a credit to the allowance account for a. $39,000 b. $41,100 $36.900 d. $2,100 13 Chen Company's account balances at December 31, 2017 for Accounts Receivable and the Allowance for Doubtful Accounts are $800,000 debit and $1,500 credit Sales during 2017 were $2,750,000. It is estimated that 1% of sales will be uncollectible. The adjusting entry would include a credit to the allowance account for a. $29,000 b. $27,500 $26,000 d. $8,000