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Question 13 Wacompany has total assets of 500,000 AED and total liability of 250,000 AED, how can this information be interpreted in terms of financial station O A The company's current ratio is good OB. The company's quick ratio is good cThe company has good profit for the previous year D. The company's has good solvency retained earnings at the beginning of the 2020 is 500,000, overstatement in 2019 income statement is 50,000, net income for 2020 is 50.000 and dividend for 2020 is zero ino dividend declared). How much is retained earnings at the end of 2020 A. 600,000 B. 400,000 100,000 0.500,000 Question 4 Which of the following is true about gains in income statement? O A. Gains and revenues are the same O B. Gains may or may not come from ordinary activities OC Gains are always more than revenue D Companies that have more gains would have more profit An asset was bought in 2015 at a purchase price of 70.000 AED. Depreciation is to annually. Aftur 5 years, what is the assets historical con A 70.000 105,000 C 62,000 D. 35.000 Which of the following does not apply to current liabilities? A. They include account payable B. They are included in the income statement C. They are payable within a year D. They are payable within an operating cycle Which of the following is not a limitation of the income statement? O A. Companies omit items that cannot be measured reliably B. It may contains accounting errors that cannot be corrected O C. Income numbers are affected by the accounting method employed O D. Income measurement involves judgement