Question: Please help me to select the correct answers. thanks Question 1) The current assets section of the balance sheet should include a) patents. b) goodwill.

Please help me to select the correct answers. thanks

Question 1)

The current assets section of the balance sheet should include

a) patents.

b) goodwill.

c) inventory.

d) machinery.

Question 2)

Making and collecting loans and disposing of property, plant, and equipment are

a) liquidity activities.

b) operating activities.

c) investing activities.

d) financing activities.

Question 3)

In a statement of cash flows, proceeds from issuing equity instruments should be classified as cash inflows from

a) lending activities.

b) operating activities.

c) investing activities.

d) financing activities.

Question 4)

Equity or debt securities held to finance future construction of additional plants should be classified on a statement of financial position as

a) current assets.

b) intangible assets.

c) property, plant, and equipment.

d) non-current investments.

Question 5)

Which of the following statements best describes a liability?

a) A liability is a legal economic benefit.

b) Any obligation, whether enforceable or not, is a liability.

c) A liability is an enforceable economic burden or obligation.

d) Deferred income taxes are always shown as liabilities.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!