A liability is a debt owed by the business. A liability can be settled by transferring assets or providing products or services to others. false liability Which of the following statements is (are) correct regarding the definition of a liability? (Check all that apply.) -A liability is a claim by creditors against the assets of a business. false land account not expense True or false: Assets are claims (by creditors) against the company. True or false: The cost of land owned by a business is recorded in the Land account and this account is classified as an expense. Prepaid accounts are assets that represent prepayments of future expenses.
Select the statement below that best defines prepaid accounts. Equipment purchases are reported on the balance sheet. Equipment is reported on the left side of the accounting equation. Which of the following statements is (are) accurate regarding equipment purchased within a business? (Check all that apply.) -Equipment cost is initially recorded as an asset and as it is used and gets worn down, the cost is gradually expensed. Another name for a note receivable is a promissory note. It is the promise of another entity to pay a specific sum of money on a specified future date. Given the descriptions below, which is (are) true regarding notes receivable? (Check all that apply.) -Notes receivable is classified as an asset. Unused supplies can be recorded as Store Supplies, Office Supplies or Supplies.
When supplies are purchased, they are added to the Supplies account. Coins, checks, money orders Which of the following statements are accurate regarding supplies? (Check all that apply.) -Supplies are assets until they are used.
From the lists of items below, choose the one which includes only items that would be defined as cash.
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