liabilities and equity in accounting coursera week 1 quiz answers
Liabilities Overview Practice Quiz
1. The claims against a company's assets are known as what?
- Equity
- Liabilities
- Notes Payable
- Accounts Payable
2. A company’s obligations that will come due within one year are known as what?
- Liabilities
- Current Liabilities
- Non-current Liabilities
- Notes Payable
3. A company’s obligations that won't come due within one year are known as ________.
- Liabilities
- Current Liabilities
- Non-current Liabilities
- Notes Payable
4. The expected balance of a particular account type is known as ___________.
- The expected balance
- The debit balance
- The credit balance
- The normal balance
Additional Current Liabilities Practice Quiz
6. True or False: A $25,000, five-year note for a trailer that requires a monthly payment of $1,000 should go under the asset section of the balance sheet.
- False
- True
7. Why is deferred revenue considered a liability?
- Because it is technically for goods or services still owed to customers.
- Because the price of the good or service may fluctuate.
- Because it is considered an expense until the payment is collected.
8. In the case of a company's deferred revenues, which occurs first?
- Receiving The Money From The Customer
- Earning the revenues
Shuffle Q/A 1
9. When a customer gives you an advance payment:
- You decrease your deferred revenue account. As you deliver goods or services, your deferred revenue account will increase.
- You increase your deferred revenue account. As you deliver goods or services, your deferred revenue account will increase too.
- You increase your deferred revenue account. As you deliver goods or services, your deferred revenue account will decrease.
10. Sal takes out a vendor line of credit of $3,000 for some upgrades to his store. He will then debit ______ for $3,000 and credit his ______ for the same amount.
- Accounts Receivable; Equity
- Accounts Payable; Cash Account
- Cash Account; Accounts Payable
- Cash Account; Accounts Receivable
