All of the Following Accounts Would Be Considered Assets EXCEPT

question 79

Multiple Choice

All of the following accounts would be considered assets EXCEPT for:

• A)Cash.
• B)Retained earnings.
• C)Prepaid expenses.
• D)Notes receivable.

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Definitions:

Indirect Method

A way of reporting cash flows from operating activities by starting with net income and adjusting for non-cash transactions.

Direct Method

A way of presenting a cash flow statement where actual cash flows from operating activities are disclosed directly.

Operating Activities

Transactions and events related to the principal revenue-producing activities of an entity, reflected in its cash inflows and outflows.

Indirect Method

A way of reporting cash flows from operating activities in the cash flow statement by starting with net income and adjusting for changes in non-cash items and operating capital.