Which of the Following Would Not Be Included in the Current

question 1

Multiple Choice

Which of the following would not be included in the current asset section of the balance sheet?

• A) bond sinking fund cash
• B) cash on deposit
• C) cash in bank ─ general
• D) cash in bank ─ payroll
• E) petty cash

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Definitions:

Variable Costs

Expenses that vary in relation to the amount of production or business activity.

Fixed Costs

Costs that do not change with the level of output produced, such as rent and salaries.

Break-Even Point

The financial analysis term where total costs and total revenues are equal, resulting in no net loss or gain for the business.

Contribution Margin

Contribution margin is the amount remaining from sales revenue after variable expenses are deducted, showing how much contributes to covering fixed costs and profit.