Buy here:
http://homework.plus/acct-105-week-3-quiz/
1. On a classified balance sheet, taxes payable should be classified as:
2. The percentage-of-completion method recognizes revenue at the point of sale.
3. Murray Sporting Goods began business on January 1, 2007, with capital stock of
$15,000. At December 31, 2007, assets amounted to $25,000 and liabilities were
$6,000. Revenue from services during the year amounted to $30,000 and dividends
were $8,000. The expenses of Murray Sporting Goods for 2007 amounted to:
4. The cash basis of accounting recognizes revenues when cash is collected.
5. The stable dollar assumption is that fluctuations in the value of the dollar are
significant and may not be ignored.
6. The completed-contract method recognizes revenues at the point of sale.
7. The historical cost approach to recording accounting data has been severely
criticized in periods of high inflation because often the income statement reports
income when the economic value of the owner’s investment has declined.
8. The cash basis of accounting is acceptable primarily in enterprises that do not have
substantial credit transactions or inventories.
9. Period costs are carried in inventory accounts as long as the goods are on hand.
10. The current ratio: