Which of the following describes working capital?
A) Current assets minus merchandise inventory
B) Current assets minus current liabilities
C) Total debt minus stockholders' equity
D) Cost of goods sold divided by average merchandise inventory
B
You might also like to view...
After closing the temporary owners' equity accounts into Income Summary, and after allocating the net income and closing the partners' drawing accounts, assume the partners' capital accounts had credit balances as follows: Golden, $30,000; Chavez, $40,000; McGinnis, $55,000 . If McGinnis retired and withdrew $50,000 in settlement of his/her equity, the amount entered in McGinnis's capital account
would be a a. $5,000 credit. b. $50,000 credit. c. $55,000 debit. d. $55,000 credit.
What impact does materiality have on the determination of how a cost related to a plant asset is reported on the financial statements?
The current liability section of the balance sheet should include:
a. buildings. b. goodwill. c. land held for speculation purposes. d. accounts payable. e. None of the answers are correct.
In what type of sales situations should a salesperson use benefit statements?
What will be an ideal response?