Unearned revenue indicates that a service or product needs to be provided in the future. Unearned revenue is a type of current liability.

Unearned revenue indicates that a service or product needs to be provided in the future.

Unearned revenue is a type of current liability.

True

	False
Bonds payable is usually a long-term liability.

Which one of the following is not a typical current liability?

FICA taxes payable

Sales taxes payable

Bonds payable

Unearned revenue

Presenting current liabilities in the order in which they were chronologically incurred is generally not acceptable.

Which of the following is not a commonly used method of presenting current liabilities on the balance sheet?

Listing currently maturing long-term debt first

In order of their maturity

Listing current debt in the order of oldest first and then chronologically

In order of magnitude or size

Land is not a depreciable asset because its usefulness and revenue-producing ability generally stay intact over time. Buildings, driveways, and equipment are all depreciable assets.

Land is not a depreciable asset because its usefulness and revenue-producing ability generally stay intact over time. Buildings, driveways, and equipment are all depreciable assets.

Which one of the following is not a depreciable asset?

Driveways

Equipment

Land

	Buildings
All declining-balance methods are affected by the beginning of the year book value.

Which depreciation method calculates annual depreciation expense based on book value at the beginning of each year?

Salvage method

Units-of-activity

Declining-balance

Straight-line