CHAPTER 5 AA015

Accrued Interest Revenue account is in which account classification group?

• Asset

• Liability

• Revenue

• Expense

Accumulated Depreciation of a fixed asset is in which account classification group?

• Liability

• Owner's Equity

• Contra account to Asset

• Asset

Which of the following will be included in the adjusting entry to recognize interest expense for the current period?

• debit Cash account

• credit Interest Payable account

• debit Interest Payable account

• debit Prepaid Interest account

The adjusting entry that reduces the balance in Prepaid Insurance will also include which of the following step?

• credit Cash account

• credit Insurance Expense account

• debit Insurance Expense account

• debit Insurance Payable account

Unearned Service Revenue account is in which account classification group?

• Asset

• Liability

• Revenue

• Expense

Prepaid Insurance and Supplies accounts are in which account classification group?

• Asset

• Liability

• Revenue

• Expense

The only long-term asset that does not depreciate is:

• Vehicles

• Land

• Building

• Office Equipment

Expenses incurred but not yet paid or recorded are called

• prepaid expenses.

• accrued expenses.

• interim expenses.

• unearned expenses.

Prepaid expenses are

• paid and recorded in an asset account before they are used or consumed.

• paid and recorded in an asset account after they are used or consumed.

• incurred but not yet paid or recorded.

• incurred and already paid or recorded.

Unearned revenues are

• revenues for services already performed, and recorded as liabilities, before they are received.

• revenues for services performed but not yet received in cash or recorded.

• Revenues for services already performed and received in cash, and recorded as revenues when received.

• revenues not recorded as revenues until services are performed.