Problem 1: How many of the following balance sheet items are classified as current?
Retained earnings
Accounts payable
Plant and equipment
Inventory
Common stock
Bonds payable
Accrued wages payable
Accounts receivable
Preferred stock
1) 3 of these items are classified as current
2) 4 of these items are classified as current
3) 5 of these items are classified as current
4) 6 of these items are classified as current
Problem 2: How many of the following items are found on the income statement, rather than the balance sheet?
* Sales
* Notes payable (6 months)
* Bonds payable, maturity 2001
* Common stock
* Depreciation expense
* Inventories
* Capital in excess of par value
* Net income (earnings after taxes)
* Income tax payable
1) 2 of these items are found on the income statement
2) 3 of these items are found on the income statement
3) 4 of these items are found on the income statement
4) 5 of these items are found on the income statement
Problem 3: How many of the following items decrease cash flow in the Statement of Cash flows?
* Increase in accounts receivable
* Increase in notes payable
* Depreciation expense
* Increase in investments
* Decrease in accounts payable
* Decrease in prepaid expenses
* Dividend payment
* Increase in accrued expenses
1) 2 of these items decrease cash flow
2) 3 of these items decrease cash flow
3) 4 of these items decrease cash flow
4) 5 of these items decrease cash flow