Learning Objective 2-1
1) A chart of accounts is a detailed record of the changes in a particular asset, liability, or stockholders' equity.
2) A chart of accounts is a list of all of a company's accounts with their account numbers.
3) Liabilities are economic resources that are expected to benefit the business in the future.
4) A payment of an expense in advance is called a prepaid expense.
5) An accounts receivable requires the business to pay cash in future.
6) A payable involves a future receipt of cash.
7) Unearned revenue is a liability account.
8) The account title used for recording the payment of rent in advance for an office building is ________.
A) prepaid rent
B) rent payable
C) rent revenue
D) rent expense
9) ________ represents a debt owed for renting a building currently.
A) Prepaid rent
B) Rent payable
C) Rent revenue
D) Rent expense
10) Nuptial Inc. paid the rent for the current month in cash. Which of the following account titles will be debited?
A) Prepaid rent
B) Rent payable
C) Rent revenue
D) Rent expense
