On the Balance Sheet, Total Assets Minus Net Fixed Assets

question 51

Multiple Choice

On the balance sheet, total assets minus net fixed assets equals:

• A)current assets
• B)current liabilities
• C)gross fixed assets
• D)total assets
• E)none of the above

Comprehend the role of customer and trade discounts in merchandising transactions.

Realize the financial representation of sales tax in sales transactions.

Understand the terms of sale and their impact on freight charges and ownership of goods.

Recognize the differences in financial statement accounts between service and merchandising businesses.

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Definitions:

Book Value

The net value of a company's assets as recorded on its financial statements, subtracting liabilities from the total assets.

Indirect Method

A way of calculating cash flows in the cash flow statement where net income is adjusted for changes in balance sheet items to calculate operating cash flows.

Statement Of Cash Flows

A financial document that presents the effects of changes in income and balance sheet items on cash and cash equivalents, categorized into the areas of operating, investing, and finance.

Cash Dividends

These are payments made by a corporation to its shareholders, usually as a distribution of profits.