Chapter 21

To record revenue that has been received but not yet earned, an entry is made that increases a liability account.

• true
• false

An expense that is paid in advance is recorded as an asset until the expense is incurred.

• true
• false

The reversing entry for accrued interest expense increases the balance of Interest Payable.

• true
• false

The adjusting entry for deferred rent income results in a debit to Rent Income.

• true
• false

The reversing entry for accrued interest income increases the balance of Interest Receivable.

• true
• false

After adjustments at the end of a fiscal period, the balance in Unearned Rent Income represents the rent still unearned.

• true
• false

Accounting procedures require that revenue and expenses be recorded in the accounting period in which revenue is earned and expenses are incurred.

• true
• false

After adjustments at the end of a fiscal period, the balance in Prepaid Rent represents the amount of rent expense for the current fiscal period.

• true
• false

The entry to journalize the reversing entry for accrued interest expense is

• debit Income Summary; credit Interest Expense.
• debit Interest Payable; credit Income Summary.
• debit Interest Expense; credit Income Summary.
• debit Interest Payable; credit Interest Expense.

The adjusting entry for accrued interest expense is

• debit Interest Payable; credit Interest Expense.
• debit Interest Expense; credit Interest Payable.
• debit Interest Expense; credit Income Summary.
• debit Income Summary; credit Interest Expense.