Accounting Terms

Assets are property or economic resources that are expected to provide a future benefit to a business.

• True

• False

Assets include accounts payable and notes payable.

• True

• False

Assets are equal to liabilities plus owner's equity.

• True

• False

An account is a record that contains the summarized information about the various types of assets, liabilities, equity, revenues, and expenses.

• True

• False

Economic resources that are expected to produce future benefits are called

• Assets

• Liabilities

• Revenue

• Capital

Accounts payable, classification:

• Noncurrent liability

• Contra Equity

• Current liability

• Contra asset

Accounts receivable, classification:

• Owners' equity

• Noncurrent asset

• Current asset

• Contra asset

Common stock, classification:

• Noncurrent liability

• Contra asset

• Contra revenue

• Owners' equity

Which of the following is an asset?

• Accounts payable

• Prepaid expense

• Retained earnings

• Bonds payable

Please classify the following account: Prepaid expense

• Asset

• Revenue

• Expense

• Equity