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Mike Gomez owns a music store called Mike’s Music and More The store hasinventory that includes pianos, guitars and other musical instruments Mike rentsthe building in which his store is located

Mike Gomez owns a music store called Mike’s Music and More. The store hasinventory that includes pianos, guitars, and other musical instruments. Mike rentsthe building in which his store is located, but owns the equipment and fixturesinside it. Last week, Mike’s Music made sales of $3,000. Some of the sales weremade in cash. Some were made to customers who have an account with Mike’s Saylor URL: http://www.saylor.org/books Saylor.org59Music and are billed at the end of the month. Last month, Mike’s Music borrowed$10,000 from a local bank to expand.1. Which of the following is not an asset owned by Mike’s Music?a. The inventory of musical instrumentsb. The building in which the store is locatedc. The amount owed to Mike’s Music by its customersd. The equipment and fixtures in the store1. Which of the following is a liability to Mike’s Music?a. The loan amount that must be repaid to the bankb. The amount owed to Mike’s Music by its customersc. The sales Mike’s Music made last weekd. The cash collected from customers on the sales made last week1. Which of the following is a true statement?a. Mike’s Music is too small for anyone to care about its financialinformation.b. The sales Mike’s Music made last week are considered revenue.c. The intent of Mike’s Music to expand is an asset.d. The sales Mike’s Music made on credit last week cannot be consideredrevenue.

May 21 2020 View more View Less

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