Accounting III - Chapter 21

Expenses incurred in one fiscal period but not paid until a later fiscal period.

• deferral

• accrual

• accrued expenses

• deferred expenses

Payments for goods or services which have not yet been received.

• accrued expenses

• deferred expenses

• deferred revenue

• accrued interest expense

An entry made at the beginning of one fiscal period to reverse an adjusting entry made in the previous fiscal period.

• correcting entry

• reversing entry

• adjusting entry

• none of the above

An entry recording revenue before the cash is received, or an expense before the cash is paid.

• accrual

• deferral

• deferred revenue

• deferred expenses

Cash received for goods or services which have not yet been provided.

• accrual

• deferral

• deferred revenue

• accrued interest expense

Interest incurred but not yet paid

• accrued interest expense

• deferred interest expense

• interest expense

• none of the above

An entry recording the receipt of cash before the related revenue is earned, or payment of cash before the related expense is incurred

• accrual

• deferral

• deferred revenue

• deferred expenses

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