HFT 2401 Exam 2 Questions and
Correct Answers Already Passed
How many accounts are listed under 'Current Assets'?
a. 3
b. 4
c. 5
d. 6 - Answer-b. 4
How many accounts are listed under 'Current Liabilities'?
a. 3
b. 4
c. 5
d. 6 - Answer-a. 3
How many accounts are listed under 'Net Property & Equipment?
a. 3
b. 4
c. 5
d. 8 - Answer-c. 5
How many accounts are listed under 'Owner's Equity'?
a. 3
b. 4
c. 5
d. 6 - Answer-a. 3
What is the amount of 'Current Assets'?
a. 38,000
b. 45,500
c. 49,000
d. 41,500 - Answer-c. 49,000
What is the amount of 'Current Liabilities'?
a. 21,000
b. 27,500
c. 27,000
d. 18,000 - Answer-c. 27,000
, What is the amount of 'Net Property & Equipment'?
a. 150,000
b. 190,000
c. 110,000
d. 142,000 - Answer-c. 110,000
What is the amount of 'Total Liabilities'?
a. 37,000
b. 34,000
c. 61,000
d. 55,000 - Answer-c. 61,000
What is the amount of "owners equity"?
a. 25,000
b. 98,000
c. 34,000
d. 41,500 - Answer-b. 98,000
What is the amount of 'Total Assets'?
a. 138,000
b. 145,500
c. 149,000
d. 159,000 - Answer-d. 159,000
The balance sheet reflects the financial position of a business as of a specific date -
Answer-TRUE
The direct method of determining cash flows from operations starts with net income -
Answer-FALSE
A "liquid" firm is one with a shortage of cash, or does not have the ability to convert its
current assets to cash. - Answer-FALSE
Working capital is best defined as the sum of total assets and total liabilities - Answer-
FALSE
A company with a current Ratio (CA/CL) of 2.5 to 1 has insufficient current assets
available to meet its current liability obligations - Answer-FALSE
Current assets are defined as resources of cash and items that will be converted to
cash sometime in the future beyond the next 12 months - Answer-FALSE
Gains on sale of Investments are subtracted from net income in calculating cash flows
from operating activities - Answer-TRUE
Correct Answers Already Passed
How many accounts are listed under 'Current Assets'?
a. 3
b. 4
c. 5
d. 6 - Answer-b. 4
How many accounts are listed under 'Current Liabilities'?
a. 3
b. 4
c. 5
d. 6 - Answer-a. 3
How many accounts are listed under 'Net Property & Equipment?
a. 3
b. 4
c. 5
d. 8 - Answer-c. 5
How many accounts are listed under 'Owner's Equity'?
a. 3
b. 4
c. 5
d. 6 - Answer-a. 3
What is the amount of 'Current Assets'?
a. 38,000
b. 45,500
c. 49,000
d. 41,500 - Answer-c. 49,000
What is the amount of 'Current Liabilities'?
a. 21,000
b. 27,500
c. 27,000
d. 18,000 - Answer-c. 27,000
, What is the amount of 'Net Property & Equipment'?
a. 150,000
b. 190,000
c. 110,000
d. 142,000 - Answer-c. 110,000
What is the amount of 'Total Liabilities'?
a. 37,000
b. 34,000
c. 61,000
d. 55,000 - Answer-c. 61,000
What is the amount of "owners equity"?
a. 25,000
b. 98,000
c. 34,000
d. 41,500 - Answer-b. 98,000
What is the amount of 'Total Assets'?
a. 138,000
b. 145,500
c. 149,000
d. 159,000 - Answer-d. 159,000
The balance sheet reflects the financial position of a business as of a specific date -
Answer-TRUE
The direct method of determining cash flows from operations starts with net income -
Answer-FALSE
A "liquid" firm is one with a shortage of cash, or does not have the ability to convert its
current assets to cash. - Answer-FALSE
Working capital is best defined as the sum of total assets and total liabilities - Answer-
FALSE
A company with a current Ratio (CA/CL) of 2.5 to 1 has insufficient current assets
available to meet its current liability obligations - Answer-FALSE
Current assets are defined as resources of cash and items that will be converted to
cash sometime in the future beyond the next 12 months - Answer-FALSE
Gains on sale of Investments are subtracted from net income in calculating cash flows
from operating activities - Answer-TRUE
