Reference no: EM132792334

Problem 1: Current assets minus current liabilities is called:

(a) liquidity.

(b) solvency.

(c) financial flexibility.

(d) working capital.

Problem 2: Property, plant, and equipment could include which of the following accounts?

(a) inventory

(b) franchise

(c) accumulated depreciation

(d) bonds payable

Problem 3: Intangible assets could include which of the following accounts?

(a) Patents

(b) Copyrights

(c) Trademarks

(d) All of the above

Problem 4: The equity that a company has in trade accounts receivable that it has assigned should be disclosed in its financial statements as a:

(a) separate component of the stockholders' equity section of the balance sheet.

(b) contra asset account.

(c) current liability.

(d) current asset.