An advantage of a classified balance sheet is that it is easy to see:
A) If the company is likely to be profitable in future periods.
B) If the company is profitable in the current period.
C) If current assets are large enough to pay current liabilities.
D) If dividends have been paid to stockholders.
Answer: C
A current liability is defined as:
A) An amount borrowed less than one year ago.
B) An amount due to an employee.
C) An amount due within one year.
D) A small amount due.
Answer: C
Patents, copyrights, franchises, and trademarks are examples of:
A) Current assets.
B) Investments.
C) Intangible assets.
D) Property, plant, and equipment.
Answer: C
