31.A similarity between the balance sheet and the statement of stockholders' equity is that both
a.are less important than the income statement
b.are prepared before the income statement is prepared
c.report activity over a period of time
d.report retained earnings
32.The term "working capital" describes the
a.amount of equity (ownership) capital in the firm
b.portion of capital actively employed in generating revenues
c.amount of debt (borrowed) capital in the firm
d.excess of current resources over current obligations
33.The Stable Company reports the following information:
Accounts payable$ 600Accounts receivable$ 8,200
Cash5,000Mortgage payable4,400
Retained earnings7,800Inventory9,200
Buildings17,600Office supplies2,600
What is the amount of the firm's current assets?
a.$13,200
b.$25,000
c.$22,400
d.$42,600
34.Which of the following sub-classifications should be reported LAST in the asset section of the balance sheet?
a.other assets
b.current assets
c.property, plant, and equipment
d.long-term investments
35.Which of the following is NOT true about financial statements?
a.the balance sheet reports the financial position of a business at a particular point in time
b.the income statement reports the net cash received during the period as a result of operating activities
c.the statement of cash flows reports the inflows and outflows of cash for the period
d.the statement of stockholders' equity includes information about net income and dividends for the period
36.When evaluating the balance sheet, liquidity refers to the
a.amount of equity a company has compared to liabilities
b.ability of a firm to meet short-term obligations
c.long-run financial health of the enterprise
d.dividend paying capability of the company
37.Accounts receivable should be classified on the balance sheet as
a.a current asset
b.stockholders' equity
c.property, plant, and equipment
d.an intangible asset
e.a long-term liability
38.Which of the following accounts should be classified on the balance sheet as an intangible asset?
a.prepaid insurance
b.cash
c.investment in another company
d.stockholders’ equity
e.trademark
39.Which of the following is used to evaluate liquidity?
a.operating expenses
b.current assets
c.plant, property and equipment
d.other assets
40.Current assets
a.include cash, accounts receivable, and inventory
b.include cash and other assets that will be used up within one year
c.sometimes include assets that will be converted to cash or consumed over a period that exceeds one year
d.include all of the above answers