41.Which of the following must be known in order to determine the organization’s total amount of working capital?
Current Assets Long-Term
a.Yes Yes
b.Yes No
c.No Yes
d.No No
42.The concept of the "operating cycle" is most critical to reporting which of the following?
a.earnings per share
b.stockholders' equity
c.cash flows
d.current assets
43.The operating cycle of most businesses is
a.greater than one year
b.the time necessary to acquire a machine, use it, sell it, and collect the resulting cash
c.the time required to manufacture and sell a product
d.less than 12 months
44.A classified balance sheet is one that
a.is not distributed publicly because of national security reasons
b.reports revenue and expenses by the category in which they were earned
c.groups assets and liabilities into specific categories
d.has a statement of retained earnings included
45.The two major components of stockholders' equity are
a.contributed capital and retained earnings
b.sales and cost of goods sold
c.revenues and expenses
d.assets and liabilities
46.The relationship between financial statements in which account balances on one statement help explain those on another statement is known as
a.accrual basis accounting
b.balancing
c.value creation
d.articulation
47.Under the concept of articulation, which of the following is the link between the cash inflow from customers and sales revenue?
a.accounts receivable
b.cost of goods sold
c.inventory
d.accounts payable
48.Which term is used in accounting to describe the interrelationship of one financial statement to one or more of the firm's other financial statements?
a.consolidation
b.amortization
c.recapitulation
d.articulation
49.Mags & Wheels, Inc. reported Retained Earnings of $20,000 at year-end 2007. The accompanying income statement reported $20,000 in revenues for 2007 and $10,000 in expenses. The beginning 2007 balance of Retained Earnings must have been
a.$50,000
b.$40,000
c.$30,000
d.$20,000
e.$10,000
50.Changes that result from profits earned, dividends paid, and stock issued are reported on
a.the balance sheet
b.the income statement
c.the cash flow statement
d.the statement of stockholders’ equity