When Preparing the Financial Statements for a Company:
When preparing the financial statements for a company:
A)the report format of the income statement lists liabilities before assets.
B)the account format for the balance sheet lists the assets on the left and liabilities and stockholders' equity on the right.
C)the multiple-step balance sheet lists assets in order of their liquidity.
D)the single-step income statement reports a number of subtotals.
Which of the following is CORRECT regarding liquidity?
A)Liquidity measures how quickly an item can be paid.
B)Accounts receivable is the most liquid asset.
C)A balance sheet lists assets and liabilities in the order of relative liquidity.
D)Equipment is a highly liquid asset.
The following accounts are listed in order of liquidity:
When classifying assets and liabilities:
A)assets are classified as liquid and non-liquid.
B)for most businesses the operating cycle is two years.
C)furniture and fixtures are long-term assets.
D)current liabilities include accounts receivable.