accounting exam 1

Question 1

in a classified balance sheet, assets are usually classified as

Answer 1

Current assets, long term investments, property, plant, equipment, intangible assets

Question 2

on a classified balance sheet, marketable securities are classified as

Answer 2

a current asset

Question 3

which of the following is not considered an asset

Answer 3

equipment
dividends
accounts receivable
inventory

Question 4

trademarks would appear in which balance sheet section

Answer 4

investments

Question 5

liabilities are generally classified on a balance sheet as

Answer 5

current liabilities and long term liabilities

Question 6

which of the following would not be classified as a long term liability

Answer 6

current maturities of long term debt

Question 7

Equipment is classified on the balance sheet as

Answer 7

A long-term investment

Question 8

all of the following are advantages for choosing a proprietorship for a business, except

Answer 8

A proprietorship is a simple form of business to set up.
A proprietorship gives the owner control of the business.
Proprietorship receive more favorable tax treatment.
Transfer of ownership is easily achieved through stock sales.