Long Written Work #1

Name (LAST NAME, FIRST NAME, M.I.

Which best describes the accounts owed by the establishment?

• Assets
• Liabilities
• Owner’s Equity
• Owner’s Drawing

Which is TRUE about Asset?

• Assets can be settled in various forms.
• Assets are incurred to realize a transfer of economic benefit.
• Assets are investment or equity of the owner in the business.
• Assets are controlled by the enterprise.

Which is a characteristic of a liability?

• Liabilities are properties or rights of properties owned by the business.
• Liabilities can be settled in various forms.
• Liabilities can yield income.
• Liabilities give future economic benefits.

Which actions will NOT result in gaining assets?

• Donation
• Purchase
• Exchange
• Distribution to other assets

Which DOES NOT describe a current liabilities?

• These are liabilities that do not fall due with one year after year – end date.
• These are debt or obligation normally expected to be settled in the normal course of the company’s operating cycle or within one year by using current assets or creating other current liabilities.
• These are accounts that are presented under the assets portion of the SFP but are reductions to the company’s asset.
• These represents the total amount of depreciation booked against the fixed asset of the company.

Which of the following is a part of asset?

• Unearned revenue
• Notes Payables
• Accumulated Depreciation
• Account Payables

Which of the following are the examples of noncurrent assets? I. Cash III. Building II. Equipment IV. Prepaid Expense

• I and III only
• I and IV only
• II, and III only
• I, II, III, and IV

Which refers to future expenses that the company had paid for in advance?

• Notes Payable
• Unearned Revenue
• Accumulated Depreciation
• Prepaid Expense

Which does NOT describe an accumulated depreciation? Note: There are 2 answers in this item. JUST.PICK.ONE.

• These are accounts that do not fall due with one year after year – end date.
• These are accounts that are presented under the assets portion of the sfp but are reductions to the company’s asset.
• This represents the estimated cost amount that the company may not be able to collect from delinquent customers.
• These represent the total amount of depreciation booked against the fixed asset of the company.