Introductory Lesson III

Fixed assets have a life expectancy of over a year

• True

• False

Liabilities could be referred to as:

• Payment responsibility

• Benefit or resource

• Property

Fixed expenses is like a salary (must pay) while variable expenses is like marketing expenses (often changes)

• True

• False

Which of the following is NOT an example of current assets

• Accounts receivable

• Marketable securities

• Land

• Inventory

Liability can be considered as

• A claim against a company's assets

• A source of company's assets

• all other options

Long term liability differs from current liability in that; long term's obligation is not payable within one year of balance sheet

• True

• False

Types of expenses

• operating

• non-operating

• fixed

• variable

• All other options

Accounts receivable

• Balance of money due for a good or a service delivered but not yet paid for by customers

• Incoming and outgoing cash

• Used to analyze company revenue and expenses

Balance statement is financial statement reporting assets, liabilities, and shareholders equity

• True

• False

Equity is a type of income statements and it shows snapshot of owns, owes, and amount invested by shareholders in a company

• True

• False