Which of the Following Items Would NOT Be Included on the Balance

question 93

Multiple Choice

Which of the following items would NOT be included on the balance sheet but would BE on the income statement?

• A) Noncurrent assets
• B) Cost of goods sold
• C) Current liabilities
• D) Net worth
• E) Accounts receivable

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Definitions:

Arbitrary and Capricious Test

A standard of review used by courts to assess the decision-making process of administrative agencies, ensuring decisions were made fairly and with a sound basis, rather than being whimsical or unreasonable.

Substantial Evidence Test

A legal standard used to review the decisions of administrative agencies, requiring evidence that a reasonable mind might accept as adequate to support a conclusion.

De Novo Review

A type of court review in which the reviewing court considers the matter anew, as if it had not been heard before and without deference to the previous court's decision.

Freedom of Information Act

A U.S. law aimed at ensuring public access to government records, subject to nine exemptions for specific categories of information.