Accounting - Study Mode

[#1031] Office equipment is a ______ asset for a computer manufacturer and the same office equipment is a ____ asset for a company that deals in these equipments
Correct Answer

(D) Fixed, current

Explanation

Solution: Office equipment is a Fixed asset for a computer manufacturer and the same office equipment is a current asset for a company that deals in these equipments.

[#1032] Financial statements mainly help in
Correct Answer

(D) Communication of economic events

Explanation

Solution: Financial statements mainly help in Communication of economic events.

[#1033] Purchases + opening stock - closing stock = ?
Correct Answer

(C) Cost of goods sold

Explanation

Solution: Purchases + opening stock - closing stock = Cost of goods sold.

[#1034] Which of the following financial statements shows the financial position of a business at a specific date?
Correct Answer

(A) Balance sheet

Explanation

Solution: Balance sheet financial statements shows the financial position of a business at a specific date. The balance sheet, sometimes called the statement of financial position, lists the company's assets, liabilities,and stockholders ' equity (including dollar amounts) as of a specific moment in time. That specific moment is the close of business on the date of the balance sheet.

[#1035] The ratios which measure the relative contribution of financing by owners and financing provided by outsiders are called:
Correct Answer

(B) Leverage ratios