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