1)

Long-term investments would appear in the property, plant, and equipment section of the balance sheet.

True

False

2)

Which of the following would NOT be classified a non-current liability?

mortgage payable

lease liabilities

current maturities of long-term debt

bonds payable

3)

The Concord Hut paid $18000 for a one-year insurance policy on January 1 and recorded the entire amount as prepaid insurance. Before preparing its March 31 financial statements the company should make which of the following adjusting entries?

debit Prepaid Insurance, $13500; credit Insurance Expense, $13500.

debit Insurance Expense, $4500 credit Prepaid Insurance $4500.

debit Cash, $18000; credit Insurance Expense, $18000.

debit Cash, $9000; credit Prepaid Insurance, $9000.