1) An item which may be converted to cash within one year or one operating cycle

1) An item which may be converted to cash within one year or one operating cycle of the firm is classified as aA)current liability.B)long-term asset.C)current asset.D)long-term liability.2) Which of the following is not a primary source of capital to the firm?A) assetsB)common stockC)preferred stockD)bonds3) The residual income of the firm belongs toA)creditors.B)preferred stockholders.C)common stockholders.D)bondholders.4) A person signs a contract calling for payments of $250000 per year to begin 10 years from now. To find the present value of this contract which table or tables should you use?A)the future value of $1B)the future value of an annuity of $1 and the future value of $1C)the present value of an annuity of $1 and the present value of $1D)none of the above