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1) Unique Aged Cheeses, Inc. specializes in producing two varieties of cheese which require a 1-month setup process to procure and prepare the necessary raw materials, then an 18-month aging process before the products are ready for sale to customers, who typically pay within 30 days. These two cheeses are Uniques only products. For the purpose of classifying assets and liabilities on the balance sheet, what will be the length of the time period used to draw the current vs. noncurrent distinction?

Multiple Choice

a. One year.

b. 18 months.

c. 19 months.

d. 20 months.

2) On December 31, 2018, Supremo Co., paid in advance for a 3-year insurance policy, covering the years 2019 through 2021. The policy cost was $1,200. If the policy had been purchased on a year-to-year basis, the total cost would have been $1,800 at current rates. Supremo Co.s normal operating cycle is 9 months long. How will the $1,200 be reported on Supremos balance sheet dated December 31, 2018?

Multiple Choice

a. $400 as a current asset, $800 as a noncurrent asset.

b. $300 as a current asset, $900 as a noncurrent asset.

c. $600 as a current asset, $1,200 as a noncurrent asset.

d. $300 as a current liability, $800 as a noncurrent liability.

3) Capsule Corp. reported the following in 2018:

Beginning retained earnings	$	260,000
Ending retained earnings	$	290,000
Cash dividends declared	$	90,000
Beginning accumulated other comprehensive income	$	20,000
Ending accumulated other comprehensive income	$	15,000

What was Capstones comprehensive income for 2018?

Multiple Choice

a. $125,000

b. $55,000

c. $115,000

d. $65,000

4) A company reports the following information as of December 31^st:

Sales revenue	$	350,000
Cost of goods sold	$	150,000
Operating expenses	$	110,000
Foreign currency translation adjustment	$	25,000

Ignoring income taxes, what amount should the company report as comprehensive income as of December 31^st?

Multiple Choice

a. $90,000

b. $125,000

c. $150,000

d. $115,000

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