Which of the Following Should Be Accounted for in an Enterprise

question 44

Multiple Choice

Which of the following should be accounted for in an enterprise fund?

• A) $ 65,000.
• B) $ 415,000.
• C) $1,250,000.
• D) $1,315,000.

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Definitions:

Liquid Ratio

A financial metric comparing a company's liquid assets (cash and marketable securities) to its current liabilities, often used to assess liquidity.

Common Size Statement

A financial statement in which each line item is expressed as a percentage of a significant total, facilitating comparison across companies or periods.

Liabilities Plus Equity

Liabilities plus equity represents the total value of a company's financial obligations plus its owners' investments, crucial for understanding its financial health.

Net Income

A company's overall earnings following the deduction of all expenses and taxes from its total revenue.