Which of the following statements is FALSE? A. Prepaid expense is an asset. B. Increase in withdrawal is credited. C. Liabilities are listed in the chart of accounts
Which of the following statements is FALSE? A. Prepaid expense is an asset. B. Increase in withdrawal is credited. C. Liabilities are listed in the chart of accounts
Financial Accounting Intro Concepts Meth/Uses
14th Edition
ISBN:9781285595047
Author:Weil
Publisher:Weil
Chapter1: Introduction To Business Activities And Overview Of Financial Statements And The Reporting Process
Section: Chapter Questions
Problem 11Q
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1. Which of the following statements is FALSE?
A. Prepaid expense is an asset.
B. Increase in withdrawal is credited.
C. Liabilities are listed in the chart of accounts based on its maturity.
B. Increase in withdrawal is credited.
C. Liabilities are listed in the chart of accounts based on its maturity.
2. Which of the following statements is FALSE?
A. Account titles in the chart of accounts are usually arranged alphabetically.
B. Assets are classified as current and non-current.
C. Land is not subject todepreciation.
3. Which of the following statements is FALSE?
A. Current liabilities are expected to be settled within twelve months.
B. Liabilities must be equal to the sum of assets and owner's equity.
C. Accounts payable is a current liability.
D. Unearned revenue is a liability.
4. Which of the following statements is FALSE?
A. Cash includes coins, bills and checks.
B. Prepaid expenses are advance payments to cover future expenses such as rent expense.
C. Cash is the most liquid asset.
D. Current assets are always reasonably expected to be realized in cash or consumed in the business after twelve months from the reporting date.
5. Which of the following statements is FALSE?
A. Increase in withdrawal is debited.
B. Expense is a temporary account.
C. Withdrawals made by the owner during a particular accounting period increases owner's equity.
D. Revenue is a major account.
A. Account titles in the chart of accounts are usually arranged alphabetically.
B. Assets are classified as current and non-current.
C. Land is not subject to
3. Which of the following statements is FALSE?
A. Current liabilities are expected to be settled within twelve months.
B. Liabilities must be equal to the sum of assets and owner's equity.
C. Accounts payable is a current liability.
D. Unearned revenue is a liability.
4. Which of the following statements is FALSE?
A. Cash includes coins, bills and checks.
B. Prepaid expenses are advance payments to cover future expenses such as rent expense.
C. Cash is the most liquid asset.
D. Current assets are always reasonably expected to be realized in cash or consumed in the business after twelve months from the reporting date.
5. Which of the following statements is FALSE?
A. Increase in withdrawal is debited.
B. Expense is a temporary account.
C. Withdrawals made by the owner during a particular accounting period increases owner's equity.
D. Revenue is a major account.
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