All of the Following Accounts Are Considered to Be Current

question 148

Multiple Choice

All of the following accounts are considered to be current liabilities on the balance sheet except:

• A) depreciation
• B) accounts payable
• C) accruals
• D) notes payable

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Definitions:

Accounts Receivable

Money owed to a business by its clients for goods or services delivered but not yet paid for.

Bad Debts

Amounts owed to a company that are not expected to be received, often due to the debtor being unable to pay. These are often written off as an expense.

Financing Activities

Transactions that result in changes in the size and composition of the equity and borrowings of an entity, as reported in the cash flow statement.