121
A company’s balance sheet presents:
A.
B.
C.
D.
Answer & Solution
A balance sheet shows a company's assets, liabilities, and equity at a particular moment, helping to assess its financial health.
122
Intangible assets refer to ___________ .
A.
B.
C.
D.
Answer & Solution
Intangible assets are non-physical assets, like patents, trademarks, or goodwill, that have value but do not have a physical form.
123
Which of the following is an example of a "non-operating item" on the income statement?
A.
B.
C.
D.
Answer & Solution
Non-operating items are not directly related to the core business activities. Interest expense is one example, while cost of goods sold and sales revenue are operating items.
124
Formula for calculating the "current ratio"
A.
B.
C.
D.
Answer & Solution
The current ratio measures a company’s ability to pay short-term obligations and is calculated by dividing current assets by current liabilities.
125
Which of the following is true about "equity financing"?
A.
B.
C.
D.
Answer & Solution
Equity financing involves raising capital by issuing shares of stock, allowing investors to own part of the company. It does not require fixed repayments like debt financing.
126
All of the following would be classified as an operating activity on the cash flow statement except ___________ .
A.
B.
C.
D.
Answer & Solution
Cash flows from operating activities include cash transactions related to the core business operations, such as receipts from customers and payments to suppliers. Dividends are part of financing activities.
