Long Quiz (Balance Sheet & Income Statement)

If an entity has notes payable over a 3-year period, that is a long-term liability but if the notes payments that are due during the current year are considered the current portion of long-term debt.

• TRUE

• FALSE

Obligations that are due and payable less than a year are current assets.

• TRUE

• FALSE

A person who owns a business with many branches can prepare a single set of financial statements.

• TRUE

• FALSE

Small businesses, such as sari-sari stores have little or no use of accounting.

• TRUE

• FALSE

Permanent accounts are real accounts.

• TRUE

• FALSE

Contra Assets accounts are nominal accounts.

• TRUE

• FALSE

Current assets and current liabilities are also called short-term assets and short-term liabilities.

• TRUE

• FALSE

Assets that cannot be realized (collected, sold, used upon year after year-end date is non-current.

• TRUE

• FALSE

For accrual, this is what the owners of an entity have invested in an enterprise. It represents what the business owes to its owners.

• TRUE

• FALSE

Fixed asset when it expects to realize the asset or intends to sell or consume it, in its normal operating cycle; it holds the asset primarily for the purpose of trading.

• TRUE

• FALSE