FABM1 REVIEW QUIZ

What do you call the certificate of indebtedness under the seal of the corporation?

• Loans Payable

• Accounts Payable

• Bonds

• Interest Payable

It includes coins, currencies, checks, bank deposits, and other cash items readily available for use in the operations of the business

• Monetary Value

• Cash

• Cash Equivalents

• Income

Debts arising from the acquisition of the business of services or products on account.

• Accounts Payable

• Notes Payable

• Utilities Payable

• Unearned Revenue

Liability arising from the amount of money borrowed by the business either from a bank or from any financial institution.

• Loans Payable

• Accounts Payable

• Interest Expense

• Interest Payable

An obligation to pay utility companies for services received from them.

• Utilities Expense

• Accrued Expense

• Utilities Payable

• Prepaid Expense

Long-term debt of the business with security or collateral in the form of real properties.

• Loans Payable

• Mortgage Payable

• Interest Payable

• Unearned Revenue

This represents the withdrawals made by the owner of the business in cash or other assets.

• Capital

• Income

• Expenses

• Drawing

This is an account bearing the name of the owner representing the original and additional investment of the owner of the business increased by the amount of net income.

• Income

• Owner's Equity

• Capital

• Investment

These are payments made to employees for rendering services to the company.

• Salaries Payable

• Salaries Expense

• Accrued Salary

• Wages Payable

This is the amount of money charged to the borrower for the use of borrowed funds on top of the principal amount borrowed.

• Interest Payable

• Loans Payable

• Accounts Payable

• Interest Expense