Assets are A. the same as expenses because they are acquired with cash B. financed by the stockholders and/or creditors C. equal to liabilities less stockholders' equity D. always lower than liabilities
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- ductory financial accounting_ Liquidity is simply: O a. another term for non-current assets O b. a company's ability to pay obligations when due O c. another term for current liabilities O d. another term for cash ype here to searchLiquid assets is determined by Select one: a. Current assets - current liabilities O b. Current liabilities- Bank overdraft c. Current assets +stock+ prepaid expenses O d. Current assets-stock-Prepaid expensesHow would the issuance of common stock for cash affect the accounting equation?a. Increase assets and increase stockholders’ equityb. Increase liabilities and decrease stockholders’ equityc. Increase assets and increase liabilitiesd. Decrease assets and decrease liabilities
- Four financial statements are usually prepared for a business. The statement of cash flows is usually prepared last. The statement of stockholders' equity (SSE), the balance sheet (B), and the income statement (1) are prepared in a certain order to obtain information needed for the next statement. In what order are these three statements prepared? Oa. B, I, SSE Ob. SSE, I, B Oc. B, SSE, I Od. 1, SSE, BThe owner's equity is computed as follows: Cash inflows less cash outflows Revenues less expenses Assets less labilities Beginning capital plus net profitContribution received from shareholders will be recorded as. a. Dr Receivables Cr Cash account b. Dr Capital Cr Cash account c. Dr Cash account Cr Capital d. Dr Cash account Cr receivables
- Classify each of these items as an asset, liability, or equity. "Share Capital - Ordinary" Choose... "Accounts receivable" "Utility Expense" Prepaid rent "Notes Payable" "Cash" S "Accou "Utility Prepai Choose... Classify each of these items as an asset, liability, or equity. "Notes Choose... "Share Capital - Ordinary" Choose... ◆ "Cash" Choose... Choose... Choose... Choose... ✔ Assets Equity Expenses Liabilities ?Select contra accounts (e.g., contra-assets, contra-liabilities, contra-equity accounts). Select all that apply. O Amortization Expense O Accumulated Amortization O Bad debt expense O Treasury Stock O Depreciation Expense O Accumulated Depreciation O Additional Paid-In Capital O Allowance for Doubtful Account O Common StockEquity equals to: O A. Total liabilities plus current assets O B. Current assets plus non-current assets less total liabilities. O C. Capital plus drawings. O D. Total assets less total liabilities.
- Cash flow to creditors is best described as: O Cash flow to creditors is also referred to as free cash flow. The sum of cash flow to bondholders and shareholders The net difference between total assets and total liabilities. O Dividends paid out by a firm less net new equity raised. A firm's interest payments to creditors less net new borrowings.The retirement of long-term debt by the issuance of common stock should be presented in a statement of cash shows as a:cash flows from financing activities does not include a. issuance of stock b. interest received c. cash dividends paid d. retirement of bonds payable