· Question 18 Which of the following would not be classified as a long-term liability?
· Question 19 The economic resources that are owned by a business are called stockholders‘ equity.
· Question 20 An advantage of using the periodic inventory system is that it requires less record keeping than the perpetual inventory system.
· Question 21 The revenue recognition principle dictates that revenue be recognized in the accounting period in which the performance obligation is satisfied.
· Question 22 Lankston Company began the year by issuing $ 90,000 of common stock for cash. The company recorded revenues of $ 825,000, expenses of $ 720,000, and paid dividends of $ 45,000. What was Lankston‘ s net income for the year?
· Question 23 The multiple-step income statement is considered more useful than the single-step income statement because it highlights the components of net income.
· Question 24 Use the following data to calculate the current ratio.
Carne Auto Supplies Balance Sheet December 31, 2014
Cash |
$ 35,000 |
Accounts |
payable |
$ 65,000 |
|