2. Which of the following statements is FALSE? A. Current liabilities are expected to be settled within twelve months. B. Liabilities must be equal to the sum of assets and owner's equity. C. Accounts payable is a current liability. D. Unearned revenue is a liability.

Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter5: Completing The Accounting Cycle
Section: Chapter Questions
Problem 11EA: For each of the following accounts, identify in which section of the classified balance sheet it...
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1. Which of the following statements is FALSE?
A. Account titles in the chart of accounts are usually arranged alphabetically.
B. Assets are classified as current and non-current.
C. Land is not subject to depreciation.

2. Which of the following statements is FALSE?
A. Current liabilities are expected to be settled within twelve months.
B. Liabilities must be equal to the sum of assets and owner's equity.
C. Accounts payable is a current liability.
D. Unearned revenue is a liability.

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