A Delivery Company Is Creating a Statement of Financial Position

question 3

Multiple Choice

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

• 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' time
• D)prepaid rent on the offices occupied by the company
• E)money owed to the firm by customers who have purchased goods on credit

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Definitions:

Ketones

Organic compounds featuring a carbonyl group (C=O) bonded to two other carbon atoms, important in biochemistry and industry.

IR Stretching Frequencies

The specific frequencies at which molecular bonds absorb infrared radiation, causing the bonds to stretch, useful in identifying functional groups in molecules.

C-N Bond

A chemical bond between carbon and nitrogen atoms, common in organic compounds such as amines and amides.

IR Stretch

Infrared stretching refers to the vibration that occurs between atoms within molecules as they absorb infrared radiation, indicative of functional groups in a compound.