Week 3

In a corporation, to whom the equity may belong?

• Associates

• Debt Holders

• Shareholders

• Parnters

Assets on the balance sheet are listed in order of liquidity

• True

• False

True or False: Revenue transactions are recorded differently depending on whether cash is received before, when, or after services are performed or products are sold.

• True

• False

True or False: Liabilities are listed in order of the amount owed, least to greatest.

• True

• False

In business accounts, net worth is formally referred to as:

• Owner's Equity

• Owner's Portion

• Owner's Stake

• Owner's Shares

An account payable is a long-term liability

• True

• False

XYZ Hotel provides $2,000 worth of rooms to customers and will receive payment within 30 days. How should this transaction be recorded?

• Increase cash; increase revenue

• Increase accounts receivables; increase unearned revenue

• None of the answers are correct

A note payable is a current asset

• True

• False

An account payable is a current asset

• True

• False