The following condensed balance sheet presents eight core accounts of a business. Which of the eight accounts have a high frequency of transactions recorded in them during the year, and which have a low frequency of transactions? In other words, which of these eight are busy accounts, and which are not?
|
Condensed Balance Sheet |
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|
Cash |
$250,000 |
|
Operating liabilities |
$350,000 |
|
Receivables |
$300,000 |
|
Interest-bearing liabilities |
$500,000 |
|
Inventory |
$400,000 |
|
Owners’ invested capital |
$250,000 |
|
PP&E, net |
$550,000 |
|
Owners’ retained earnings |
$400,000 |
|
Assets |
$1,500,000 |
= |
Liabilities and Owners’ Equity |
$1,500,000 |