Select the Statement That Is Not True Regarding Assets

question 7

Multiple Choice

Select the statement that is not true regarding Assets.

• A)Asset accounts include but are not limited to: cash,accounts receivable,inventory,and fixed assets.
• B)Assets provide a future benefit to the company.
• C)Assets are amounts a company owes to others.
• D)Assets are resources a company owns.

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Definitions:

Adjusting Entry

An accounting record made to update the balances of accounts to reflect the true financial position before preparing financial statements.

Unexpired Insurance

The portion of the insurance premium that has not yet expired or been used up, considered a prepaid expense.

Office Supplies

Consumable items that are used in the daily operations of an office like pens, paper, and staplers.

Adjusting Entry

A journal entry made in accounting to update the record of revenues earned or expenses incurred that have not been previously recorded.