Correction.

• Position: Correction Notice

In the Winter 2002 issue article, "Testing Your Financial Literacy," incorrect answers were given for the following two questions in the 15-question test. The mistakes were made by DIRECTORS & BOARDS and not the author, and we apologize for the error.

Question 3. Which of the following is not typically included among "current assets" on the balance sheet?

1. Accounts receivable

2. Fixed assets

3. Inventory

4. Prepaid expenses

5. All of the above are typically included

   Correct Answer: b. Current assets are generally assets that will be converted into cash within a year (or one normal business cycle). Fixed assets (equipment, plant) are usually long-term in nature.

   Question 14. Gross margin is generally defined as:

1. Revenue less allowances for returns and bad debts

2. Revenues less direct operating costs, usually costs of goods sold

3. Revenues less costs of good...