. In this case that means $400,000 DIVIDED BY $2,000,000 = 20%. 25% Wrong. See the calculations for 20%. 30% Wrong. See the calculations for 20%. 14. The debt to equity ratio is computed as: (Total Liabilities ÷ Total...
. In this case that means $400,000 DIVIDED BY $2,000,000 = 20%. 25% Wrong. See the calculations for 20%. 30% Wrong. See the calculations for 20%. 14. The debt to equity ratio is computed as: (Total Liabilities ÷ Total...
Our Explanation of the Balance Sheet provides you with a basic understanding of a corporation's balance sheet (or statement of financial position). You will gain insights regarding the assets, liabilities, and...
the number of issued shares in arriving at the number of outstanding shares of stock. 15. A corporation purchased some of its shares of common stock from some of its stockholders, but did not retire the shares. Which of...
in the early years of the asset's life and then slower in later years when compared to the straight-line method. 15. The book value of an asset is defined as Cost Minus Salvage Value Wrong. There is no account...
Revenue Right! Unearned Revenue will most likely be earned within one year of the balance sheet date. Therefore it is a current liability. (As it is earned, it moves from the balance sheet to the income statement as...
will expire until January 1. Therefore, on December 31, the entire $6,000 should be reported as the current asset Prepaid Insurance. As of December 31, none of the $6,000 should be reported as insurance expense. 15. On...
. 15. What balance would you expect in a contra revenue account such as Sales Returns and Allowances? Select... Debit balance Credit balance View Coaching Since revenue accounts normally have credit balances, a contra...
that have not expired as of the balance sheet date should be reported in an asset account such as Prepaid Insurance. [As the prepaid insurance premiums expire an adjusting entry should be written to credit the asset...
than Cash) and changes in current liabilities are shown in the operating activities section of the statement of cash flows. 15. A decrease in the current liability Income Taxes Payable. Operating Right! Income Taxes...
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