QUESTION 31 2.8571 points A current asset may be cash or must be capable of being converted into cash within a relatively short period of time, usually less than two years. True False QUESTION 32 2.8571 points The payment of debt will have no effect on the owner's (stockholder's) equity of a business True False QUESTION 33 2.8571 points Employees are owed $750 for services since the last payday in February, to be paid the first week in March. If the unadjusted trial balance at the end of February lists Salaries Expense in the amount of $7,800, then the amount to be reported in the February income statement for salaries expense is $7,050 True False QUESTION 34 2.8571 points Solvency relates to a company's ability to pay its debts. True False QUESTION 35 2.8571 points The cash balance in the general ledger is $3,100. The bank statement balance, however, is $3,900. The only reconciling items are a $700 deposit in transit, a $7 bank service charge, and several outstanding checks. The "adjusted cash balance" per the books is $3,103 True False QUESTION 25 2.8571 points Measures of profitability tell us how quickly current assets can be converted into profits. True False QUESTION 26 2.8571 points Saved Accumulated depreciation is not a "contra-account that would appear on the balance sheet. True False QUESTION 27 2.8571 points Saved The statement of financial position and the income statement are one and the same. True False QUESTION 28 2.8571 points saved The collection of an account receivable will cause total assets to decrease. True False 2.8571 points I saved QUESTION 29 In a general ledger, debit entries cause decreases in liabilities, increases in assets, and increases in owner's equity. True False 2.8571 points QUESTION 30 If Midwood paid $2.400 for a three-year insurance policy, the transaction could be recorded by a $2,400 debit to Insurance Expense and a credit to Cash True QUESTION 20 2.8571 points A credit memorandum from a bank indicates that they have decreased the depositor's cash balance. True False QUESTION 21 2.8571 points Save Ans If Accounts Payable are 528,000, Accounts Receivable are $20,000, Buildings are $153,00 0. Capital Stock is $185,000, Cash is $13,000, Equipment is $20,000, Land is $80,000, Notes Payable is $24,000, and Retained Earnings is $49,000, then the total of the credit column in the trial balance is $286,000 True False QUESTION 22 2.8571 points Assets = Liabilities - Equity True False QUESTION 23 2.8571 points Save Ar At December 31, 2019, if Accounts Payable are $16,000, Land is $240,000, Building is $180,000, Retained Earnings is $160,000, Accounts Receivable is $40,000, Equipment is $120,000, Notes payable is $190,000, and Cash is $86,000, then Capital Stock is $260,000 True False QUESTION 24 2.8571 points When a business borrows money from a bank, the immediate effect is an increase in total assets and a decrease in liabilities or owners' equity True False