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SashulF [63]
3 years ago
6

Maxim Company had the following partial listing of accounts and balances at year-end: Cash, $7,000; Accounts Receivable, $6,000;

Accounts Payable, $15,000; Equipment, $23,000; Inventories, $5,000; Supplies, $1,000; Land, $75,000; Unearned Service Revenue, $13,000; and Prepaid Rent, $4,000. The total current assets for Maxim Company is ________.a. $19,000.
b. $23,000.
c. $149,000.
d. $98,000.
Business
2 answers:
lana66690 [7]3 years ago
5 0

Answer:

Explanation:

All the assets that are in cash or expected to be converted into cash within next one year are classified as Current Asset e.g cash, inventory etc.

Current Assets

Cash                             $7,000

Accounts Receivable  $6,000

Prepaid Rent,               $4,000

Inventories,                  $5,000

Supplies                      <u> $1,000 </u>

Total Current Assets   <u>$23,000</u>

The Following accounts are non current accounts, they belong to Fixed assets / non current assets and Liabilities.

Equipment, $23,000

Land, $75,000

Unearned Service Revenue, $13,000

Accounts Payable, $15,000

MrRissso [65]3 years ago
3 0

Answer:

B. $23,000

Explanation:

Recall that, assets are resources that an individual or an organization has which have future economic value that can be measured,

Thus,

Total current assets = Cash + account receivable + supplies + prepaid rents + inventories.

Therefore

Total current assets = 7000 + 6000 + 1000 + 4000 + 5000

= $23,000

Note: Land is not included in CURRENT asset. Land are longterm assets.

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What is the statute of limitations for transactions​ involving: a. Fraud​ (e.g., failure to file a tax​ return) b. Disallowance
san4es73 [151]

Answer:

The statute of limitations is as indicated for different cases:

a: Fraud: The statute of limitations remains open.

b:Disallowance of tax deduction items: The assessment is made within three years from the later date of tax filing or due date.

c: The omission of rental income that is equal to greater than​ 25% of the​ taxpayer's reported gross income: A six year statute of limitation is applicable.

Explanation:

The statute of Limitations for the following cases are

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b. Disallowance of tax deduction items

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c:The omission of rental income that is equal to greater than​ 25% of the​ taxpayer's reported gross income

In this case the statute of Limitations indicate that <em> A six year statute of limitations applies if the taxpayer omits an item of gross income that is in excess of​ 25% of the gross income that is reported on the return.</em>

<em></em>

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