A Delivery Company Is Creating a Balance Sheet

question 20

Multiple Choice

A delivery company is creating a balance sheet. Which of the following would most likely be considered a short-term liability on this balance sheet?

• A) the depreciation over the last year in the value of the vehicles owned by the company
• B) revenue received for the delivery of items that have not yet been delivered
• C) a loan which must paid back in two years
• D) prepaid rent on the offices occupied by the company

---

Definitions:

Equilibrium

A state in which market supply and demand balance each other, resulting in stable prices and quantities.

Positively Sloped

A line or curve on a graph that moves upward and to the right, indicating a direct relationship between two variables.

Negatively Sloped

Describes a line on a graph that moves downward from left to right, indicating an inverse relationship between two variables.

Total Surplus

The sum of consumer surplus and producer surplus, representing the total benefits to society from the trade of a good or service.