1. Which of the following statements represents a flow concept?
Balance sheet
Statement of retained earnings
Inventory statement
None of the above
2. Which of the following accounts is listed in order of reverse liquidity ?
Currents assets
Current liabilities
Both a & b
Capital stock
3. Prepaid expenses are found on the
Income statement
Balance sheet
Statement of retained earnings
None of the above
4. On the balance sheet, accounts receivable is
Cash due from customers that have purchased on credit
Cash from bank deposits
Cash from notes payable
None of the above
5. Blackson Incorporated signed a 3 year lease for the building that Blackson occupies and paid the rent for the first six months in advance. The account that should be debited is
Prepaid expenses
Cash
Building
Accounts payable
None of the above