1. Which of the following statements concerning accumulated depreciation is most
ID: 2628066 • Letter: 1
Question
1. Which of the following statements concerning accumulated depreciation is most correct?
2.
What are the three major categories of assets (select 3)
Current Assets
3.
Consider the following balance sheet:
Cash $ 70,000Accounts payable $ 30,000
Accounts receivable 30,000Long-term debt 20,000
Inventories 50,000Common stock 200,000
Net fixed assets 350,000Retained earnings 250,000
Total assets $500,000Total claims $500,000
Which of the following statements is most correct?
The business, in the aggregate over time, has been profitable.
4.
Consider the following balance sheet:
Cash $ 70,000Accounts payable $ 30,000
Accounts receivable 30,000Long-term debt 20,000
Inventories 50,000Common stock 200,000
Net fixed assets 350,000Retained earnings 250,000
Total assets $500,000Total claims $500,000
Assume that the business uses $10,000 of its cash to pay for supplies that were ordered on credit terms and have already been received and booked (recorded on the balance sheet). Which of the below statements reflects the resulting balance sheet change?
The cash account decreases by $10,000 and the accounts payable account decreases by $10,000.
5.
Consider the following balance sheet:
Cash $ 70,000Accounts payable $ 30,000
Accounts receivable 30,000Long-term debt 20,000
Inventories 50,000Common stock 200,000
Net fixed assets 350,000Retained earnings 250,000
Total assets $500,000Total claims $500,000
Assume that the business uses $30,000 of its cash to pay salaries. Which of the below statements reflects the resulting balance sheet change?
Explanation / Answer
1. Which of the following statements concerning accumulated depreciation is most correct?
None of the above statements is correct
2.What are the three major categories of assets (select 3)
investments
property and equipment
durrent asset
3.
The business, in the aggregate over time, has been profitable.
4.
The cash account decreases by $10,000 and the accounts payable account decreases by $10,000.
5.
The cash account decreases by $30,000 and the retained earnings account is reduced by $30,000.
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