Deck 2: Categorizing Inventory on the Balance Sheet

Question 1

ROA is computed as:

A) Net income / Average stockholders' equity
B) Earnings without interest expense (EWI)/ Average total assets
C) Profit margin × Asset turnover
D) B or C

Answer 1

B or C

Question 2

The chart of accounts is also known as the book of original entry.

Answer 2

False

Question 3

If Camrey's Trucks makes the appropriate adjusting entry, how much will be reported on the December 31, 2016 balance sheet as unearned revenue?

A) $ 90,000
B) $216,000
C) $ 64,000
D) $ 98,000

Answer 3

$216,000

Question 4

Companies may not report internally created assets, such as the value of a successful marketing campaign, design innovations and a highly motivated work force on their balance sheets.

Question 5

Inventory

A) Current assets
B) Long-term investments
C) Long-term assets
D) Intangible assets
E) Current liabilities
F) Noncurrent liabilities
G) Equity
H) item should not appear on the balance sheet

Question 6

Land

A) Current assets
B) Long-term investments
C) Long-term assets
D) Intangible assets
E) Current liabilities
F) Noncurrent liabilities
G) Equity
H) item should not appear on the balance sheet

Question 7

Building

A) Current assets
B) Long-term investments
C) Long-term assets
D) Intangible assets
E) Current liabilities
F) Noncurrent liabilities
G) Equity
H) item should not appear on the balance sheet

Question 8

Note receivable due in 30 days

A) Current assets
B) Long-term investments
C) Long-term assets
D) Intangible assets
E) Current liabilities
F) Noncurrent liabilities
G) Equity
H) item should not appear on the balance sheet

Question 9

Accounts receivable

A) Current assets
B) Long-term investments
C) Long-term assets
D) Intangible assets
E) Current liabilities
F) Noncurrent liabilities
G) Equity
H) item should not appear on the balance sheet