PRC-1 · Chapter 10 · Question 96 of 100
Which of the following items is treated as a Current Liability?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Unearned (Pre-received) Income
Explanation
Unearned income represents money received for goods or services that have not yet been provided. It is an obligation to perform in the future, thus a current liability.
More Preparation of Financial Statements MCQs
- Q98Under a periodic inventory system, the 'Closing Inventory' figure used in the financial statements is determined by:
- Q99Which of the following represents an intangible asset?
- Q100A business records depreciation of Rs. 10,500 for the year. Which of the following is the correct journal entry?
- Q1Which of the following statements regarding the presentation of financial statements is correct?
- Q2The following list of assets relates to Bizcom Enterprises: Prepaid Expenses Rs. 41,500; Cash in hand Rs. 22,800; Fixtures Rs. 72,300…