Test

Test 3 - Chapters 3/4 B

Claudia Voin 10 preguntas

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Preguntas del test (10)

1If prepaid costs are initially recorded as an asset, no adjusting entries will be required in the future
1. AVerdadero
2. BFalso
2A liability-revenue account relationship exists with an unearned rent revenue adjusting entry
1. AVerdadero
2. BFalso
3Unearned revenue is a prepayment that requires an adjusting entry when services are performed
1. AVerdadero
2. BFalso
4The adjusting entry at the end of the period to record an expired cost may be different depending on whether the cost was initially recorded as an asset or expense
1. AVerdadero
2. BFalso
5UNDER ORIGINAL METHOD
Revenue received before it is earned and expenses paid before being used or consumed are both initially recorded as liabilities
1. AVerdadero
2. BFalso
6UNDER ORIGINAL METHOD
An adjusting entry always requires an Income Statement account and a Balance Sheet account
1. AVerdadero
2. BFalso
7UNDER ORIGINAL METHOD
Asset prepayments become expenses when they expire
1. AVerdadero
2. BFalso
8UNDER ALTERNATE METHOD
Revenue received before it is earned and expenses paid before being used or consumed are both initially recorded as liabilities
1. AVerdadero
2. BFalso
9UNDER ALTERNATE METHOD
An adjusting entry always involved an Income Statement account and a Balance Sheet Account
1. AVerdadero
2. BFalso
10Asset prepayments become expenses when they expire
1. AVerdadero
2. BFalso