Yes or No on balance sheet under LIABILITY

4 Written Questions

1. a bill was received from the lawn service that cuts the grass weekly and the bill has not yet been paid
2. agree to purchase insurance coverage for the next six months
3. pay for advertising that will be run in the newspaper next month
4. Hire employees and promise them they will be able to work 40 hours each week for the next year

4 Multiple Choice Questions

1. buy furniture and agree to make monthtly payments for the next 3 years
   1. No
   2. No (agreed but no transaction yet)
   3. Yes
   4. No (company has no liabilities)
2. 1. Probable use of a future economic benefit
   2. owe
   3. past transaction
   1. No (company has no liabilities)
   2. What is required to be a liability
   3. Yes
   4. No (agreed but no transaction yet)
3. borrow money to buy a building to be used for warehouse space
   1. No (agreed but no transaction yet)
   2. No (company has no liabilities)
   3. No
   4. Yes
4. buy office supplies for employees and agree to pay in 30 days
   1. No
   2. Yes
   3. No (agreed but no transaction yet)
   4. No (company has no liabilities)

3 True/False Questions

1. Yes → borrow cash from the bank to be repaid in 3 years

   True        False

2. No (company has no liabilities) → agree to purchase insurance coverage for the next six months

   True        False

3. No → a bill was received from the lawn service that cuts the grass weekly and the bill has not yet been paid

   True        False