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ACTG 210 Ch. 2 Exam Questions With
Correct Answers 100% Verified.
Using the following balance sheet and income statement data, what is the current ratio?
Current Assets: $21,000
Current Liabilities: $12,000
Average assets: $132,000
Total assets: $90,000
Average common shares outstanding was: $15,000
Net Income: $45,000
Stockholders' Equity: $63,000
Total Liabilities: $27,000 - Answer✔1.75:1
The economic entity assumption states that economic events ... ? - Answer✔of every entity can
be separately identified and accounted for
An item is considered material if...? - Answer✔Its size is likely to influence the decision of an
investor or creditor
Use the data to determine the total dollar amount of assets to be classified as current assets
Cash $126,000
A/R $120,000
Inventory $210,000
Prepaid insurance 90000
Stock investments 255,000
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land 285,000
buildings 339,000
Building depreciation (60,000) --> total = 279,000
trademarks 210,000
Total assets = $1,050,000
A/P 165,000
salaries payable 30,000
mortgage payable 270,000
total liabilities= $465,000
Common Stock 360,000
retained earnings 750,000
total stockholders equity: $1,110,000
Total liabilities and stockholders equity: 1,575,000 - Answer✔$546,000
What is the total amount of property, plant, and equipment that will appear on balance sheet?
Land: 150,000
land for future use: 225,000
Buildings: 1,200,000
Inventory: 300,000
Equipment: 675,000
Furniture: 150,000
Accum. Depreciation: 450,000 - Answer✔1,725,000
What is not a quality of useful information? - Answer✔Flexibility
What is equipment classified as on the balance sheet? - Answer✔Property, plant, and
equipment
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ACTG 210 Ch. 2 Exam Questions With
Correct Answers 100% Verified.
Using the following balance sheet and income statement data, what is the current ratio?
Current Assets: $21,000
Current Liabilities: $12,000
Average assets: $132,000
Total assets: $90,000
Average common shares outstanding was: $15,000
Net Income: $45,000
Stockholders' Equity: $63,000
Total Liabilities: $27,000 - Answer✔1.75:1
The economic entity assumption states that economic events ... ? - Answer✔of every entity can
be separately identified and accounted for
An item is considered material if...? - Answer✔Its size is likely to influence the decision of an
investor or creditor
Use the data to determine the total dollar amount of assets to be classified as current assets
Cash $126,000
A/R $120,000
Inventory $210,000
Prepaid insurance 90000
Stock investments 255,000
1|Page
, ©THESTAR 2024/2025 ALL RIGHTS RESERVED 12:43 PM.
land 285,000
buildings 339,000
Building depreciation (60,000) --> total = 279,000
trademarks 210,000
Total assets = $1,050,000
A/P 165,000
salaries payable 30,000
mortgage payable 270,000
total liabilities= $465,000
Common Stock 360,000
retained earnings 750,000
total stockholders equity: $1,110,000
Total liabilities and stockholders equity: 1,575,000 - Answer✔$546,000
What is the total amount of property, plant, and equipment that will appear on balance sheet?
Land: 150,000
land for future use: 225,000
Buildings: 1,200,000
Inventory: 300,000
Equipment: 675,000
Furniture: 150,000
Accum. Depreciation: 450,000 - Answer✔1,725,000
What is not a quality of useful information? - Answer✔Flexibility
What is equipment classified as on the balance sheet? - Answer✔Property, plant, and
equipment
2|Page
