Which of the following would be listed as a current liability?

QUESTION 1

Which of the following would be listed as a current liability?

A.

Supplies held in the storeroom.

B.

Retained Earnings

C.

Accounts payable.

D.

Cash in the bank.

4 points Save Answer

QUESTION 2

Which of the following is a true statement?

A.

Revenue accounts are a subset of assets, and expense accounts are a subset of liabilities.

B.

Both revenue accounts and expense accounts are subsets of contributed capital.

C.

Both revenue accounts and expense accounts are subsets of retained earnings.

D.

Revenue accounts are a subset of cash, and expense accounts are a subset of accounts payable.

4 points Save Answer

QUESTION 3

Assets reported on the balance sheet would include which of the following?

A.

Accounts payable, retained earnings and cash

B.

Accounts receivable, sales revenue and cash

C.

Equipment, supplies expense and cash

D.

Accounts receivable, equipment and cash

4 points Save Answer

QUESTION 4

Which of the following would be reported on the income statement for the current year?

A.

In the current year, the company issued stock to owners and received cash immediately.

B.

In the current year, the company received payment in cash for goods that were sold to customers last year.

C.

In the current year, the company sold goods to customers who agreed to pay next year.

D.

In the current year, the company borrowed money from the bank which is to be used in the business activities this year.

4 points Save Answer

QUESTION 5

Stockholders' equity in a corporation consists of:

A.

All assets plus all liabilities.

B.

Current assets plus long-term assets.

C.

Contributed capital plus retained earnings.

D.

Long-term assets.

4 points Save Answer

QUESTION 6

What does a firm's balance sheet tell us about the firm?

A.

A balance sheet shows the sources and uses of cash for a period of time.

B.

A balance sheet shows the assets, liabilities, and equity of the firm at a given period of time.

C.

None of these are correct.

D.

A balance sheet summarizes a firm's revenues, expenses, gains, and losses for a period of time.

4 points Save Answer

QUESTION 7

What does a firm's statement of cash flows tell us about the firm?

A.

A statement of cash flows shows the sources and uses of cash for a period of time.

B.

None of these are correct.

C.

A statement of cash flows shows the assets, liabilities, and equity of the firm at a given period of time.

D.

A statement of cash flows summarizes a firm's revenues, expenses, gains, and losses for a period of time.

4 points Save Answer

QUESTION 8

Which of the following is NOT true about liabilities?

A.

Liabilities + equity = assets.

B.

Examples of liabilities include retained earnings, revenues and expenses.

C.

Liabilities are amounts owed by a business.

D.

Examples of liabilities include notes payable, deferred revenue and income tax payable.

4 points Save Answer

QUESTION 9

Which of the following is NOT an asset?

A.

Land

B.

Cash

C.

Notes receivable

D.

Contributed capital

4 points Save Answer

QUESTION 10

A long-term liability is one that the company:

A.

will not pay off for over one year.

B.

paid-in capital.

C.

will not pay off for over five years.

D.

retained earnings

4 points Save Answer

QUESTION 11

Which of the following would not be reported on the Income Statement?

A.

Rent expense in the amount of rent paid during the period for use of a storage facility in the current period.

B.

Cost of land, paid in cash, and purchased for future use.

C.

Utilities expense in the amount of a bill received for utilities used during the current period but unpaid as of the end of the period.

D.

Revenue in the amount of services provided to customers who promise to pay in the next period.

4 points Save Answer

QUESTION 12

What does a firm's income statement tell us about the firm?

A.

None of these choices are correct.

B.

An income statement shows the assets, liabilities, and equity of the firm at a given period of time.

C.

An income statement shows the sources and uses of cash for a period of time.

D.

An income statement summarizes a firm's revenues, expenses, gains, and losses for a period of time.

4 points Save Answer

QUESTION 13

Why is it necessary to record depreciation expense?

A.

None of these are correct.

B.

To show that something has been sold.

C.

To show that benefits acquired have been used up.

D.

To show that the value of something has decreased.

4 points Save Answer

QUESTION 14

What does it mean when a firm "capitalizes" something?

A.

Capitalizing means we pay for something over time.

B.

Capitalizing means classifying something as an asset.

C.

Capitalizing means recording an expense.

D.

Capitalizing means we sell something to a customer.

4 points Save Answer

QUESTION 15

Which of the following statements is true?

A.

Expenses are listed before revenues on the income statement.

B.

The income statement is prepared after the balance sheet.

C.

Dividends declared are listed on the income statement

D.

Operating income is listed before net income on the income statement.

4 points Save Answer

QUESTION 16

Which of the following would not be classified as a current asset?

A.

Inventory

B. Accounts

C.

Cash

D.

Supplies

4 points Save Answer

QUESTION 17

Assets are always listed on a classified balance sheet in which of the following ways?

A.

Beginning with non-current assets and ending with current assets.

B.

From the smallest dollar amount to the largest dollar amount.

C.

In alphabetical order.

D.

Starting with cash.

4 points Save Answer

QUESTION 18

Which of the following would not appear as a possible liability on the balance sheet?

A.

Retained earnings

B.

Accounts payable

C.

Notes payable

D.

Wages payable

4 points Save Answer

QUESTION 19

What is the difference between sales revenue and income?

A.

Sales revenue is what is received from customers in the regular course of business and income is how much revenue is left after expenses are deducted.

B.

Sales revenue is what is received from customers in the regular course of business and income measures the resources used to generate revenue.

C.

Income is what is received from customers in the regular course of business and sales revenue is how much income is left after expenses are deducted.

D. There

4 points Save Answer

QUESTION 20

The common characteristic NOT possessed by all assets is

A.

physical substance.

B.

C.

D.

usually has greater financial value.

4 points Save Answer

QUESTION 21

What is a dividend?

A. Amounts paid to shareholders out of a firm's retained

B.

Amounts paid to shareholders to buy back their stock.

C.

Amounts paid to lenders as compensation for lending money.

D.

Amounts paid to suppliers.

4 points Save Answer

QUESTION 22

Which of the following accounts does not have a normal debit balance?

A.

Accounts Receivable

B.

Wages Expense

C.

Cash

D. Sales

4 points Save Answer

QUESTION 23

Which of the following statements is FALSE?

A.

Assets would appear on the Income Statement.

B.

Revenues would appear on the Income Statement.

C.

Dividends would appear on the Statement of Retained Earnings.

D.

Cash flows from financing activities would appear on the Statement of Cash Flows.

4 points Save Answer

QUESTION 24

Revenues

A.

decrease expenses.

B.

increase stockholders' equity.

C.

increase liabilities.

D.

decrease assets.

4 points Save Answer

QUESTION 25

Which of the following accounts does not have a normal credit balance?

A.

Contributed capital

B.

Expense

C.

Accounts payable

D.

Revenue