A retailing firm has which type of inventory?
A. raw materials
B. work in process
C. merchandise
D. raw materials and merchandise
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A manufacturing firm will most likely have the heaviest investment in which type of assets?
A. cash
B. inventory
C. accounts receivable
D. plant, property, and equipment
Which of the following is not the problem in balance sheet presentation?
A. different methods are used in asset valuation
B. inflation and deflation are not reflected in the balance sheet
C. some figures are not very reliable
D. it can not match the revenue and expense very well
Gross profit is the difference between:
A. net income and operating income
B. revenues and expenses
C. sales and cost of goods sold
D. income from continuing operations and discontinued operations
Which of the following accounts would not be classified as an intangible?
A. franchises
B. research and development
C. patent
D. trademarks
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