32) Which of the folowing is a current asset? A) treasury bill maturing in 2 mon

Question

32) Which of the folowing is a current asset? A) treasury bill maturing in 2 months B) land held for investment C) equipment D) goodwill following accounts: on's trial balance for December 31, the end of its fiscal year, included the Accounts Payable Dividends Payable Bond Payable, maturing in 9 years Salaries Payable Note Payable, due in 1 year Note payable, due in 5 years $45,000 15,000 54,000 10,000 25,000 80,000 The bond payable is a serial bond with equal amounts of principal maturing each year. T payable due in 5 years has equal principal payments due each year he note he amount that should be classified as current liabilities on Anderson's December 31 balance sheet is A) $92,000 B) $111,000 C) $117,000 D) $162,000 34) All of the following activities are classified as operating activities on a statement of cash flows except A) purchase of inventory B) sale of treasury bills with a 60-day maturity date C) payments from customers D) purchase of a Certificate of Deposit

Explanation / Answer

32)

Answer is (a) treasury bill maturing in 2 months

Any assets which is going to mature in the next 12 months is current assets.

33)

Answer is (c) $117000.

Calculation of Current liabilities:

Particulars

Amount

Account Payable

45000

Dividend Payable

15000

Bond Payable

6000(54000/9)

Salary Payable

10000

Notes payable

25000

Notes payable

16000(80000/5)

Total

117000

34)

Answer is (d) Purchase of certificate of deposit.

Purchase of certificate of deposit is a investing activity.

Particulars

Amount

Account Payable

45000

Dividend Payable

15000

Bond Payable

6000(54000/9)

Salary Payable

10000

Notes payable

25000

Notes payable

16000(80000/5)

Total

117000

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