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

[C] Supplies

[D] Marketable securities

problem3: Which of the following is not considered an asset?

[A] Accounts receivable

[B] Inventory

[C] Equipment

[D] Dividends

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.