Prepaid accounts are prepaid expense accounts. These type of accounts are classified as current assets.
Example: Prepaid insurance is a prepaid expense account. This will get reduce once they are incurred.
Therefore, the correct answer is third option.
Which of the following statements is correct about prepaid accounts O Prepaid accounts are also called...
Which of the following statements is correct about prepaid accounts O Prepaid accounts are also called prepaid expenses and are considered assets. O Prepaid accounts are another name for accounts receivable and are reported as an asset. O Prepaid accounts are current expense accounts and are reported on the income statement. O Prepaid accounts are also called prepaid liabilities and are classified as liabilities.
Which of the following statements about the Accumulated depreciation account is (are) correct? (Check all that apply.) Accumulated depreciation is an expense account. The Accumulated depreciation account allows the original cost of the asset to remain in the plant asset account. Accumulated depreciation is a contra account. Accumulated depreciation is added to its plant asset on the income statement. Accumulated depreciation is subtracted from its plant asset on the balance sheet. Accumulated depreciation accumulates the total depreciation taken on an asset since its purchase.Explain what unearned...
1. Which of the following financial statements groups together accounts of similar nature and reports them in a few major classifications? Classified-balance sheet Multi-step income statement Statement of stockholders equity Statement of cash flows SelectabcdItem 1 2. What is unique about reporting current assets? Current assets are reported after they are converted into cash Current assets are reported in the order of their liquidity Current assets are reported net of depreciation Current assets are reported from highest to lowest SelectabcdItem...
The following are categories of accounts reported in the financial statements: Current Assets E. Stockholders’ Equity Non-Current Assets F. Revenue Current Liabilities G. Expense Non-Current Liabilities H. Not Applicable Indicate where each of the following accounts would be reported (classified) in the financial statement categories noted above (categories may be used more than once or not at all). Identify only one category for each account listed below. ___G___Accrued Liabilities ________Accumulated Depreciation _______Rental Income ________Intangible Property _______Wages Expense ________Unearned Subscription Revenues _______Bonds Payable ___E___Retained Earnings 2. _____i. What is total Stockholders’ Equity based on...
Which of the following statements about the balance sheet is most correct? O The balance sheet provides information about the financial position of an organization as of a moment in time. O The balance sheet provides detailed information about the assets, liabilities, equity, revenues, and expenses of an organization. O The balance sheet is affected by changes in the net income of the organization. O Statements a. and c. are both correct. O Statements a, b, and c. are all...
Using the ball ce sheet data below, which of the following statements is TRUE about 2017 cash payments to suppliers? Assets Cash Accounts Receivable Inventory Prepaid Expenses Total Current Assets Net Fixed Assets Total Assets 2017 2016 $ 1,038,600 S 1.246,200 S 835,000 $ 501,100 $ 3,676,900 $ 2,976,300 S 75,900 $ 105,400 '$ 5,626,400'S 4,829,000 $ 1,964,500 $ 1,785,600 $ 7,590,900 $ 6,614,600 Liabilities & Equity Accounts Payable Operating Accruals Notes Payable (ST) Total Current Liabilities Long-Term Debt Total...
The following are categories of accounts reported in the financial statements: Current Assets E. Stockholders’ Equity Non-Current Assets F. Revenue Current Liabilities G. Expense Non-Current Liabilities H. Not Applicable Indicate where each of the following accounts would be reported (classified) in the financial statement categories noted above (categories may be used more than once or not at all). Identify only one category for each account listed below. _______Accrued Liabilities ________Accumulated Depreciation _______Rental Income ________Intangible Property _______Wages Expense ...
Amount Descriptions
Decrease in accounts payable
Decrease in accounts receivable
Decrease in inventories
Decrease in prepaid expenses
Decrease in salaries payable
Depreciation
Increase in accounts payable
Increase in accounts receivable
Increase in inventories
Increase in prepaid expenses
Increase in salaries payable
Net cash flow from operating activities
Net cash flow used for operating activities
Net income
Net loss
The net income reported on the income statement for the current year was $210,000. Depreciation recorded on equipment and a building amount...
Accounting 11 NAME MIDTERM For B CLASS SEAT# PART I-ANSWER THESE QUESTION ON SCANTRON (use pencil) For questions, 1-5 select one of the choices A-E for categories on a Classified Balance Sheet: A. Current liabilities D. On Income Statement E. On Statement of Owner's Equity B. Long-term liabilities C. Owner's equity 1. Accounts Payable 2. Notes payable due in 10 years 3. Owner's Withdrawals 4. Service Revenues 5. Unearned Revenue For questions, 6-10 select one of the choices A-E for...
The current asset section of Guardian Consultant’s balance sheet consists of cash, accounts receivable, and prepaid expenses. The 2021 balance sheet reported the following: cash, $1,400,000; prepaid expenses, $460,000; long-term assets, $3,400,000; and shareholders’ equity, $3,500,000. The current ratio at the end of the year was 2.5 and the debt to equity ratio was 1.4. Required: Determine the following 2021 amounts and ratios Current Liabilities? Long-term Liabilities? Accounts Receivable? The acid-test ratio?