Unearned revenues are an asset. True or False

• True

• False

Accrued expenses are expenses that have been paid in the current accounting year.

• True

• False

Net profit is the difference between revenue earned from the sale of goods and cost of goods sold.

• True

• False

Balance day adjustments are entries made at balance day in order to match revenues and expenses accurately.

• True

• False

All ledger accounts are closed off at the end of the accounting year to the Profit or Loss summary account.

• True

• False

Prepaid expenses are:

• an asset

• a liability

• a revenue

• an expense

Accrued revenues are:

• revenues earned but not received

• revenues owing by the business

• revenues received but not earned

• revenues listed in the SOPL

Accrued revenues are:

• a revenue

• a liability

• an asset

• an expense

Rent of $250 was received in advance. The BDA would be:

• DR Rent expense

  CR Unearned Revenue

• DR Accrued revenue

  CR Rent Revenue

• DR Rent revenue

  CR Unearned revenue

• DR Rent revenue

  CR Accrued revenue

Wages of $1500 are owing on balance day. The BDA would be:

• DR Accrued expenses

  CR Wages

• DR Accrued revenue

  CR Wages

• DR Wages

  CR Prepaid expenses

• DR Wages

  CR Accrued expenses