Which statement is correct for the statement of financial position tobalance?A) Assets = CapitalB) Net assetsCapital + profit - drawingsC) Net assets = Capital + profit + drawingsD) Non-current assets + Current assets = Liabilities

The correct answer is:B) Net assets = Capital + profit - drawings Explanation:The statement of…

Answered: Which statement is correct for the…

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter1: Accounting And The Financial Statements

Section: Chapter Questions

Problem 13DQ: Define current assets and current liabilities. Why are current assets and current liabilities...

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Similar questions

Which of the following is the correct formula for calculating rate of return on total assets? A. (Net income minus− Interest expense) / Average total asset B. Total equity / Total assets C. (Net income + Interest expense) / Average total assets D. (Net income minus− Interest expense) / Total assets
The monetary value of the net assets is reported at its historical cost on the balance sheet? a. physical capital b. excess capital c. net capital d. financial capital
Financial Asset at Fair Value under OCI would have its gain or loss reported at what Financial Statement? Income Statement Cash Flow Changes in Owners Equity Balance Sheet
Question: What is the formula for calculating the current ratio? a. Current Assets / Current Liabilitiesb. Current Liabilities / Current Assetsc. Total Assets / Total Liabilitiesd. Total Liabilities / Total Assets
Which of the following is incorrect? A. Capital + Liabilities = Assets B. Assets Liabilities Capital C. Assets = Capital + Liabilities D. Assets Capital - Liabilities
Which formula calculates the return on assets ratio? a. (Net Income + Discontinued Operations)/Average Assets b. Net Income/Average Total Assets c. (Net Income + Income Tax Expense)/Average Assets d. Income from Continuing Operations/Average Assets. Answer this financial Accounting MCQ.
Which formula calculates the return on assets ratio? a. (Net Income + Discontinued Operations)/Average Assets b. Net Income/Average Total Assets c. (Net Income + Income Tax Expense)/Average Assets d. Income from Continuing Operations/Average Assets. Answer this General Accounting MCQ.
Which of the following is incorrect? A. Capital + Liabilities = Assets B. Assets Liabilities Capital Capital + Liabilities = Capital - Liabilities C. Assets D. Assets -
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The following are the typical classifications used in a balance sheet: Current assets b. Investments c. Property, plant, and equipment d. Intangible assets e. other assets f. Current liabilities g. Long-term liabilities h. Paid-in capital i. Retained earnings a. Required: For each of the following balance sheet items, use the letters above to indicate the appropriate classification category. (If the item is a contra account, select the appropriate letter with a minus sign.) 1. C Equipment 10. ſa Inventory ces 2. t Accounts payable 11. Patent 3. lа Allowance for uncollectible accounts Land (used in operations) a 12. 4. b Land (held for investment) 13. Accrued liabilities (due in 6 months) 5. g Notes payable (due in 5 years) 14. Prepaid rent (for the next 9 months) 6. Deferred revenue (for the next 12 months) 15. h Common stock 7. f Notes payable (due in 6 months) 16. Building (used in operations) 8. i vAccumulated amount of net income less dividends 17. a Cash 9. b Investment in XYZ…
On the Statement of Financial Position, which of the following is true? Group of answer choices A. Assets and Liabilities are reported as totals, and Net Assets are reported by unrestricted and restricted classifications. B. Liabilities are reported as a total, and Assets and Net Assets are reported by unrestricted and restricted classifications. C. Assets, Liabilities, and Net Assets are reported by unrestricted and restricted classifications. D. Assets are reported as a total, and Liabilities and Net Assets are reported by unrestricted and restricted classifications.
Which of the following describes how assets are listed onthe balance sheet?a. In alphabetical order.b. In order of magnitude, lowest value to highestvalue.c. In the order they will be used up or turned intocash.d. From least current to most current

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Which statement is correct for the statement of financial position to balance? A) Assets = Capital B) Net assets Capital + profit - drawings C) Net assets = Capital + profit + drawings D) Non-current assets + Current assets = Liabilities