1. Prepaid expenses have

a.been recorded as expenses and paid

b.been incurred and paid

c.not yet been recorded as expenses but have been paid

d.not yet been recorded as expenses

2 On the balance sheet, owners equity is

a.equal to the total of assets and liabilities

b.added to liabilities and the two are equal to assets

c.subtracted from liabilities and the net amount is equal to assets

d.added to assets and the two are equal to liabilities

3 . Deferred revenue is revenue that is

a.earned but the cash has not been received

b.earned and the cash has been received

c.not earned but the cash has been received

d.not earned and the cash has not been received

4 Prepaid insurance is reported on the balance sheet as a

a.fixed asset

b.long-term liability

c.current liability

d.current asset