The Classified Balance Sheet for a Company Reported Current Assets

question 204

Multiple Choice

The classified balance sheet for a company reported current assets of $811,925,total liabilities of $399,770,Common Stock of $500,000,and Retained Earnings of $65,130.The current ratio was 2.5. Which of the following statements is not correct?

• A)Total Assets are $964,900.
• B)Total Stockholders' equity is $565,130.
• C)Noncurrent liabilities are $65,130.
• D)The amount of current assets is 2.5 times the amount of current liabilities.

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Definitions:

Contribution Margin

The selling price per unit, minus the variable cost per unit, which helps in determining the profitability of products.

Break-even Chart

A graphical representation that shows the point at which total costs and total revenue are equal, indicating no net loss or gain.

Total Revenue

The total amount of money generated by a business from its sales of goods or services before any expenses are subtracted.

Total Cost

The complete amount of money spent on the production of goods or services, including all variable and fixed costs.