Question

1.) Bonds payable is a(n) _________________ account.

Multiple Choice: Choose one of the following listed below

Asset, Liability, Equity, Revenue, Expense

2.) Discount on Bonds Payable is a(n) _________________ account.

Multiple Choice

Asset, Liability, Equity, Revenue, Expense

3.) Common Stock is a(n) _________________ account.

Multiple Choice

Asset, Liability, Equity, Revenue, Expense

4.) Dividends is a(n) _________________ account.

Multiple Choice

Asset, Liability, Equity, Revenue, Expense

5.) Premium on Bonds Payable is a(n) _________________ account.

Multiple Choice

Asset, Liability, Equity, Revenue, Expense

6.) Preferred Stock is a(n) _________________ account.

Multiple Choice

Asset, Liability, Equity, Revenue, Expense

7.) Treasury Stock is a(n) _________________ account.

Multiple Choice

Asset, Liability, Equity, Revenue, Expense

8.) Accounts receivable is a(n) _________________ account.

Multiple Choice

Asset, Liability, Equity, Revenue, Expense

9.) Cash is a(n) _________________ account.

Multiple Choice

Asset, Liability, Equity, Revenue, Expense

10.) Accumulated Depreciation is a(n) _________________ account.

Multiple Choice

Asset, Liability, Equity, Revenue, Expense

Answer 1

1- Bond payable is a Liability account.

2- Discount on bond payable is a Liability account. Actually discount on bond payable is a contra liability account, which is always having a debit balance, it is presenting in balance sheet with the Bond payable account.

3- Common stock is a Equity account.

4- Dividend is a Equity account. Dividend is a temporary equity account. at the time of declaring dividend, Retained earnings is debiting by dividend payable account.

5- Premium on bonds payable is a Liability account.

6- Preferred stock is a Equity account. Preferred stockholders is a type of owners of the company, who is having prefer before the common stockholders.

7- Treasury stock is a Equity account. Actually treasury stock is a contra equity account, which is always having a debit balance. It appears in balance sheet along with equity stockholders balance.

8- Accounts receivable is a Asset account.

9- Cash is an Asset account.

10- Accumulated depreciation is a Liability account. Normally accumulated depreciation is appearing in asset side of balance sheet along with respective fixed asset. Accumulated depreciation is always having a credit balance, hence the amount is deducting from the cost of fixed asset in balance sheet. On other view it can say, accumulated depreciation is a contra asset account.

Asset = Resource owned by the company

Liability = The company owe to other parties

Equity = Owners equity

Expense = Cost/loss to the company

Revenue = Income/gain to the company