problem1: Expenses are incurred
[A] To produce liabilities
[B] To generate revenues
[C] Only on rare occasions
[D] To produce assets
problem2: Which of the following is not classified properly as a current asset?
[A] A fund to be used to purchase a building within the next year
[B] A receivable from the sale of an asset to be collected in two years
[D] Marketable securities
problem3: Which of the following is not considered an asset?
[A] Accounts receivable
problem4: Which of the following is not a current liability?
[A] Taxes payable
[B] Bonds payable
[C] Wages payable
[D] Accounts payable
problem5: On a classified balance sheet, companies usually list current assets
[A] In the order in which they are expected to be converted into cash.
[B] In the order of acquisition.
[C] In alphabetical order.
[D] With the largest dollar amounts first.