Financial Accounting Week 4

An example of a current asset

• Accounts Payable

• Equipmment

• Accounts Receivable

• Property

Computers and other assets that are expected to last for more than a year are referred to as:

• Current Assets

• Current Liabilities

• Fixed Assets

• Long-Term Liabilities

Assets on a balance sheet are listed in order of liquidity

• True

• False

JKL Catering provided $5,000 worth of services on account last month. This month the company received the $5,000 payment. How should the transaction this month be recorded?

• Increase accounts receivable; increase revenue

• Increase in cash, decrease in accounts payable

• Increase in cash, decrease in accounts receivables

• What the finance

When a business borrows money from the bank, there would be in increase in assets and an increase in liabilities.

• True

• False

Which account would you find on the income statement?

• Bank Loan

• Accounts Receivables

• Rent Expense

• Owner's Equity

Assets - Expenses = Profit/Loss

• True

• False

What asset account should be used when payment of services provided to the customer is to be paid next month?

• Accounts Payable

• Prepaid Expenses

• Accounts Receivable

• Capital

FGH Restaurant recorded a $500 telephone bill last month on account. This month the payment is made. How should this transaction be recorded?