1 Which of the following statements is correct A The term si

1. Which of the following statements is correct? A) The term single-step income statement is sometimes used to describe a classified incoms B) If a business is to earn a net income, the gross profit on sales must be great enough to m cover operating expenses. C) Salaries of office employees would be grouped with the selling expenses in the Operatin section of the income statement. D) All of the above statements are correct. 2. The beginning capital balance shown on a statement of owner\'s equity is $43,000. Net incor period is $18,000. The owner withdrew $22,000 cash from the business and made no additiona inestments during the period. The owner\'s capital balance at the end of the period is A) $39,000. B) $47,000. C) $61,000. D) $83,000. 3·The balance of the owner\'s drawing account is A) listed in the Other Expenses section of the income statement. B) listed in the Current Assets section of the balance sheet. C) used in the calculation of ending capital on a statement of owner\'s equity D) listed in the Operating Expenses section of the income statement. 4. Which of the following is not a current asset? A) Accounts Receivable B) Prepaid Insurance C) Merchandise Inventory D) Equipment 5. Prepaid expenses appear in the A) Operating Expenses section of the income statement. B) Other Expenses section of the income statement. C) Current Assets section of the balance sheet. D) Current Liabilities section of the balance sheet. 6. Which of the following accounts is not closed? A) Accumulated Depreciation B) Depreciation Expense C) Interest Expense D) Sales 7. Which of the following accounts is not closed? A) Sales B) Accounts Receivable C) Depreciation Expense D) All of the accounts listed above are closed.

Solution

1) Answer D is correct. All of the statement given are correct.

2) Answer A is correct. Capital balance=43000+18000-22000=$39,000

3) Answer C is correct. It is shown in equity section.

4) Answer D is correct. Equipment is not current assets. Rest all are current assets.

Please raise additonal questions for remaining part as per chegg policy.