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Company A reports the following account balances: Cash of $12,000; accounts receivable of $20,000; inventory of $15,000; property, plant, and equipment of $40,000; accumulated depreciation of $24,000; accounts payable of $5,000; accrued expenses of $6,000; short term notes payable of $7,000; long term notes of $10,000, and capital stock of $20,000. What were Company A's total liabilities?
Liabilities listed include accrued expenses of $6K, accounts payable of $5K, short term notes payable of $7K, and long term notes of $10K, for a total of $28K in liabilities.
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Which of the following would be classified on the balance sheet as a current asset?
Prepaid insurance is classified as a current asset because they are typically fully amortized within 1 year.
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Florax Company begins Year 2 with $8,000 in its machinery & equipment account and $1,500 in related accumulated depreciation. During Year 2, Florax bought $4,000 in additional equipment and recorded total depreciation expense for the year of $800. What amount will Florax report as net machinery & equipment in its Year 2 balance sheet
Florax began the year with $6,500 in net machinery & equipment ($8K - $1,500). $6,500 plus $4K in purchases, minus $800 in depreciation recorded equal engine net machinery & equipment of $9,700.
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Of the following, which account would not be included in a balance sheet?
Operating expenses belong on the income statement rather than the balance sheet. Fixed assets and cash are assets on the balance sheet.
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