which of the following is a sub - classification of assets in the balance sheet? cash and cash equivalents…
which of the following is a sub - classification of assets in the balance sheet? cash and cash equivalents revenue disposable assets current assets question 7 8 pts the single - step format of the income statement reports nonoperating gains in the revenues section of the income statement. true false question 8 8 pts what are temporary earnings? earnings from transactions that are not likely to occur again in the foreseeable future both a and c earnings from transactions that are likely to generate similar profits in the future earnings from transactions likely to have a different impact on income in the future
Answer
Brief Explanations:
- In the balance - sheet, assets are classified into current assets, non - current assets etc. Cash and cash equivalents is a part of current assets. Revenue is an income statement item, not an asset sub - classification. There is no such standard sub - classification as disposable assets. Current assets is a major sub - classification of assets on the balance sheet.
- In the single - step income statement, all revenues (including non - operating gains) are grouped together in the revenues section and all expenses are grouped together in the expenses section.
- Temporary earnings are earnings from transactions that are not likely to occur again in the foreseeable future.
Answer:
- Question 1: D. Current assets
- Question 7: True
- Question 8: A. Earnings from transactions that are not likely to occur again in the foreseeable future