Which of the Following Accounts Would Be Classified as a Current

question 102

Multiple Choice

Which of the following accounts would be classified as a current liability?

• A)Service revenue.
• B)Wages expense.
• C)Accumulated depreciation.
• D)Dividends payable.

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Definitions:

Adjusted Trial Balance

A list of all accounts and their balances after adjusting entries are made, used to verify the equality of debits and credits in the accounting process.

Unearned Rent

Income received for rent that has yet to be earned, typically because the service period has not yet been completed; it is recorded as a liability.

Adjusting Entry

Journal entries made in an accounting period's end to allocate revenues and expenses to the period in which they actually occurred.

Rent Receivable

An account in the balance sheet that represents the amount of rental payments owed to a property owner but not yet received.