Which of the following is not an asset?

a. Cash

b. Accounts payable

c. Inventory.

d. Buildings

2. The matching principle in accounting refers to:

a. Matching revenues with expenses in the same period

b. Matching liabilities with assets in the same period

c. Matching dividends with earnings in the same period

d. Matching gains with losses in the same period

3. Which of the following is an example of a long-term liability?

a. Accounts receivable

b. Notes payable due in 30 days

c. Wages payable

d. Bonds payable due in 5 years

4.Which of the following financial statements shows a company's net income or net loss?

a. Balance sheet

b. Income statement

c. Statement of cash flows

d. Statement of changes in equity

5. What is the purpose of the double-entry accounting system?

a. To ensure accuracy in recording financial transactions

b. To minimize taxes owed by the company

c. To increase revenues for the company

d. To decrease expenses for the company

Answer rating: 100% (QA)

The detailed answer for the above question is provided below 1 Answer The correct answer is b Accounts payable Accounts payable represents money that a company owes to its creditors or suppliers for g... View the full answer