Which of the following are true? I. A classified balance…
Which of the following are true? I. A classified balance sheet utilizes standard classifications and sections to group together similar assets and similar liabilities. II. Inventory, debt investments, prepaid insurance, and service revenue are all current assets. III. Long term investments include notes receivable, nonoperating land and buildings, and stock and bonds held for more than one year. IV. Current liabilities include obligations of the company that must be paid within the next year or operating cycle. V. Current assets are shown in order of liquidity on the classified balance sheet.
Read DetailsAre the following statements true or false? A Sole Propriet…
Are the following statements true or false? A Sole Proprietorship is simple to set up and gives the owner control over the business. [1] Corporations are organized as a separate legal entity that is owned by stockholders. [2] Owners of a corporation have more legal liability than owners of a partnership. [3] The internal revenue service is an internal user of financial information [4]. There are five basic financial statements. [5] The CFO is an internal user of financial information [6].
Read DetailsWisconsin Company had the following financial information fo…
Wisconsin Company had the following financial information for the year ended December 31, 2024: Common Stock Dividends: $100,000 Preferred Stock Dividends: $50,000 Sales Revenue: $1,000,000 Weighted Average Shares Outstanding: 180,000 Earnings Per Share: $2.50 What was Wisconsin Company’s Net Income for the year ended December 31, 2024?
Read DetailsAre the following operating, investing, or financing activit…
Are the following operating, investing, or financing activities? Paying cash for an advertising campaign is a/an [1] activity. Using excess cash to purchase a bond of another company is a/an [2] activity. Borrowing money from a credit union is a/an [3] activity. Selling shares of stock to investors is a/an [4] activity. Purchasing materials to be used in the manufacturing process is a/an [5] activity. Paying income taxes to the Internal Revenue Service is a/an [6] activity. Purchasing land to build a new office park is a/an [7] activity. Issuing a bond to raise cash for a new project is a/an [8] activity.
Read DetailsAre the following statements true or false? Consistency is…
Are the following statements true or false? Consistency is a company-specific aspect of useful information where misstatement or omission of that information could impact the information user’s decision-making. [1] Periodicity, economic entity, going concern, and monetary unit are all assumptions that are used for financial reporting. [2] The Public Company Accounting Oversight Board is the primary accounting standard-setting body in the United States. [3] Faithful Representation means that information accurately depicts what really existed or happened. [4]
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