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Question

.When there is a settlement b.When the warranty When the sale of d N of a warranty claim made by a customer. merchandise is made. these obligation is recognized 1 points QUESTION 17 Which of the following items is not classified as a current asset? C a Accounts Receivable. b.Merchandise Inventory. Office Equipment. 1. d.Prepaid Rent. 1 points QUESTION 18 On a classified balance sheet, the financial statement user will be able to distinguish between: Cacash flow from operations and 1. cc. current and nonrd, none of b. product and period costs. C these cash flow from investing activities current assets. 1 points QUESTION 19 Which of the following items would be least likely to appear in the current liabilities section of a classified balance sheet? 1. a. Accounts Payable. Wages Payable C.Bonds Pavable, d.Interest Payable. 1 points

Explanation / Answer

:Question 17:

Current Assets are those assets which are held for shorter period i.e., less than 12 months.

Here, Office Equipment is the asset which is held for longer period.

Hence, Office Equipment cannot be classified as Current Asset.

Correct Option is c) Office Equipment

Question 18:

In a Classified Balance Sheet, assets are classified into current and non current assets. Hence the user will be able to distinguish between current and non current assets.

Correct Option is c) Current and non current assets

Question 19:

Bonds Payable can be either short term or long term. If it is short term, it is classified as current asset and if it is long term, it is classified as non current assets.

Hence it is least likelyto appear in the current liabilities section of a classified balance sheet.

Correct Option is c) Bonds Payable

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