Foundations of Business Financ1 Question and answers 100% correct 2024/2025
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Course
ACCT
Institution
ACCT
Foundations of Business Financ1 Question and answers 100% correct 2024/2025 Foundations of Business Finance (Peregrine)
True or false: The one fixed asset that is not depreciated is land because it seldom declines in value. - correct answer True
__________ liabilities are those due within ...
Foundations of Business Finance
(Peregrine)
True or false: The one fixed asset that is not depreciated is land because it
seldom declines in value. - correct answer ✔True
__________ liabilities are those due within one year. - correct answer
✔Current
__________-__________ __________ liabilities are due after more than a
year, and may include bonds, mortgages, and long-term loans. - correct
answer ✔Long-term debt
Name the three types of accounts listed as current liabilities on balance
sheets. - correct answer ✔(1) Accounts Payable
(2) Notes Payable
(3) Accrued Expenses
Accounts payable - correct answer ✔The amounts owed for credit purchases
by a firm
Notes payable - correct answer ✔Outstanding short-term loans, typically
from commercial banks
Accrued expenses - correct answer ✔Costs that have been incurred by a
firm which have not yet been paid; examples of accruals include taxes owed
to the government and unpaid wages
, The __________ __________ section of a balance sheet provides information
about the claims against a firm held by investors who own preferred and
common shares. - correct answer ✔Stockholders' equity
The Stockholders' equity section of the balance sheet is reflected in four types
of accounts. These include __________ __________, __________
__________, __________-__________-__________ __________
___________ __________ __________, and __________ __________. -
correct answer ✔(1) preferred stock
(2) common stock
(3) paid-in-capital excess of par
(4) retained earnings
__________ __________ shows the total proceeds from the sale of preferred
stock. - correct answer ✔Preferred stock
__________-__________-__________ __________ __________
__________ __________ equals the number of shares outstanding multiplied
by the original selling price of the shares, net of the par value. - correct
answer ✔Paid-in-capital in excess of par
__________ __________ equals the number of outstanding common shares
multiplied by the par value per share. - correct answer ✔Common stock
__________ __________ (often $1) is an artifact of earlier pre-computer
accounting methods used to track the number of outstanding shares. It has no
relation to the actual value of the shares. - correct answer ✔Par value
__________ __________ are the cumulative total of the earnings that the firm
has reinvested in its assets and operations since its inception. - correct
answer ✔Retained earnings
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