Compare the List of Accounts Below and Choose the List

question 212

Multiple Choice

Compare the list of accounts below and choose the list that contains only accounts that would be classified as asset accounts on the Chart of Accounts.

• A)Accounts Payable; Cash; Supplies.
• B)Unearned Revenue; Accounts Payable; Dividends.
• C)Building; Prepaid Insurance; Supplies Expense.
• D)Cash; Prepaid Insurance; Equipment.
• E)Notes Payable; Cash; Dividends.

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Definitions:

Default Probability

The likelihood that a debtor will fail to make required payments on their debt.

Monthly Interest Rate

The interest rate that is applied on a monthly basis to the principal of a loan or mortgage to calculate the monthly interest payment.

Net Present Value

A valuation method that calculates the present value of an investment's expected cash flows, minus the initial investment cost.

Monthly Interest Rate

The percentage of interest that is charged or earned on a loan or investment over a month's time period.