12- Which statement about fixed assets is TRUE?
A. A fixed asset is entered as an expense when purchased.
B. Businesses use fixed assets to promote the main operations of the business, such as a
vehicle, machinery, or equipment.
C. When you create a new company and enter a fixed asset, you credit its long-term
liability account.
D. Fixed assets always have a long-term liability associated with them.
14- When would you consider a customer debt an uncollectible receivable?
A. The debt is older than one year.
B. You've been unable to contact them to collect.
C. The debt is associated with a non-inventory item.
D. You need to match income with expenses.
15 Which \"behind-the-scenes\" image shows what happens when you write off a bad debt?
Accounts Receivable
Bad Debt Expense
100
100
A.
Bad Debt Expense
Accounts Payable
100
100
B.
Accounts Receivable
100
C.
Bad Debt Expense
100
Checking
Bad Debt Expense
100
100
D.
20- Match each balance sheet account type to its description.
ACCOUNT TYPES
DESCRIPTIONS
A. Other Current Asset
1. Loans that will take more than a year to
pay off
B. Fixed Asset
C. Current Liabilities
2. An asset you plan to use within a one-year
period
D. Long-Term Liabilities
E. Equity
3. The owner's investment in the company
4. A tangible asset with more than a year of
useful life
5. Loans you expect to pay off within a year
QuickBooks Online
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