Question

1. Which of the following in not classified as a current liability?

   		Note payable, due in 4 years
   		Salaries and wages payable
   		10-year bonds payable, maturing in 6 months
   		Payroll taxes payable

2.5 points   

QUESTION 3

1. Assume that your bank loaned several million dollars to Entity G to finance the construction of a new manufacturing plant. In which section of Entity G's statement of cash flows would you be able to determine whether the company used the cash to build the new plant?

   		financing activities
   		investing activities
   		stockholders’ activities
   		operating activities

2.5 points   

QUESTION 4

1. Entity B started the year with total assets of $300,000 and total liabilities of $240,000. During the year the business recorded $630,000 in revenues, $330,000 in expenses, and dividends of $60,000. Stockholders’ equity at the end of the year was

   		$300,000.
   		$270,000.
   		$240,000.
   		$360,000.

Answer 1

2)

Answer:

Correct option is , Note payable due in 4 years.

Note payable due in 4 years is not classified as a current liabilities. Current Liabilities is that portion of liabilities which is to be paid with in a year.

3)

Answer:

Correct option is , Financing Activities.

Cash Proceeds from long term finance is shown under financing Activities of Cash Flow Statement.

4)

Answer:

Correct option is , $300000.

Stock holder equity at the beginning of the period = $300000 - $240000 = $60000

Add: Net Income during the Year ($630000 - $330000) = $300000

Less: Dividends = $60000

Stock holder's equity at the end of year = $300000