Question

Question 14 (1 point)

Example of a Current Asset is

a

Accounts Payable

b

vehicles

c

Merchandise inventory

d

Equipment

Question 15 (1 point)

The Salaries Payable Account of James Bay Company Limited appears below:

What is the salary expense for 2020?

a

$ 388,400

b

$ 410,920

c

$ 375,600

d

$ 398,120

Question 5 (1 point)

When preparing the financial statements from an adjusted Trial Balance, which of the following financial statements should be rpepared first?

a

Statement of Changes in Equity

b

Cash Flow Statement

c

Balance Sheet

d

Income Statement

Answer 1

1) Answer:c)Merchandise Inventory

Accounts payable is a liability for us, hence cannot be a current asset since we need to pay off our suppliers.Vehicles and equipments have a life of more than 1 year and hence are Non-Currenr Assets.

Merchandise Inventory is regularly used in course of business with a life of less than 12 months. Hence, it is a current asset since we own the inventory which will fetch us future economic benefit.

2)No image of account in the Question

3)d) While preparing the financial statements from an adjusted Trial Balance, Income statement should be prepared first.

The Profit/Loss figure from income statement is then transferred to Statement of Changes in equity, which finally shows as Other Equity in the Balance Sheet.