Accounting

Ten years ago, a corporation started a new brand name that is now considered to be its most valuable asset. On which financial statement and at what amount will you see the brand name reported?

• Balance Sheet At Its Present Value

• Statement Of Comprehensive Income With No Value

• Not Reported On A Financial Statement

A __________ amount will appear on the left side of a T-account.

• debit

• credit

Accrued expenses are likely to pertain to transactions that have __________ been paid.

• already

• not yet

The original cost of an asset presently in use is generally not relevant in the decision to replace the asset.

• True

• False

Answer explanation

This is a past or sunk cost.

GAAP is the acronym for __________.

The first section of the statement of cash flows is the __________ activities.

The quick ratio EXCLUDES which of the following accounts?

• Accounts Receivable

• Inventory

• Cash

If a company's sales were to triple, some fixed expenses are likely to increase.

• True

• False

Answer explanation

Expenses remain fixed in a reasonable range of sales or other activity. A 200% increase in activity is so significant that even fixed costs will likely change. For example, you may need to add another supervisor, another manager, and to expand the warehouse.

The original cost of an asset presently in use is generally not relevant in the decision to replace the asset.

• True

• False

Working capital is __________ net working capital.

• the same as

• different from