Major Accounts

Which of the following is not an example of residual equity over assets of a business enterprise?

• Liabilities

• Owner's Interest

• Capital

• Net Assets

Which of the following would NOT be a current asset?

• Prepaid Insurance

• Accounts Payable

• Supplies

• Land

Which of the following is noncurrent liabilities?

• Accrued expense payable

• Unearned revenues

• Bonds payable

• Taxes payable

Which of the following statement is incorrect?

• An estimated amount may be assigned to a liability when it is presented in the balance sheet.

• The settlement of a liability requires cash payment.

• Liabilities represent present economic obligations that would require future settlement.

• Liabilities can result from accepted trade practices or business commitments.

An item NOT generally classified as a current asset is:

• Trade receivables

• Patent

• Inventories

• Prepaid rent

An item NOT generally classified as a current liability is:

• Bonds payable

• Accrued interest payable

• Revenue received in advance

• Accounts payable

Unearned revenues is what type of account?

• Asset

• Liability

• Equity

• No correct answer

Which of the following is not true of a liability of the business?

• The obligation involves a responsibility to settle with a definite or known party.

• A reliable estimated monetary value can be assigned to an obligation

• The past transaction or event has resulted in an obligation

• The obligation to settle cannot be avoided.

If the tenant who is occupying a space owned by the enterprise has not paid the rent for May, the enterprise would have ________ as of May 31?

• Accrued Rent income

• Rent payable

• Unearned rent income

• No correct answer

Which of the following is not included in other revenues and expenses?

• Rent income

• Interest income

• Interest expenses

• Rent expense