Accounting

Revenue that has been earned by providing a good or service, but for which no cash has been received.

• Service Revenue

• Recurring Revenue

• Accrued Revenue

• Unearned Revenue

It is also known as accrued liabilities.

• Accrued Expenses

• Accrued Revenues

• Prepaid Expenses

• Depreciation

Money received from a customer for work that has not yet been performed.

• Accrued Revenue

• Prepaid Expenses

• Unearned Revenue

• Accrued Expenses

Accrued expenses are treated as assets on the balance sheet, whereas prepaid expenses are treated as liabilities.

• TRUE

• FALSE

This happens when assets lose value over time until the value of the asset becomes zero, or negligible.

• Expenses

• Revenues

• Depreciation

• Payment

The Accumulated Depreciation account is decreased when it is credited.

• True

• False

The Accumulated Depreciation account is known as a "contra" account because even though it is a ____________ account, it has a ________________ balance.

• asset, credit

• liability, debit

• asset, debit

• liability, credit

A red Dodge Viper was bought on July 1 of the current year for $180,000. It is expected to last 20 years with 0 Salvage Value. Calculate the amount of depreciation as of December 31st of the current year using the straight line method of depreciation.

• $4500

• $9000

• $54,000

• $2,700

We purchased Indian Insurance (Prepaid Insurance) on June 1st, 2020 for $252. What is the Insurance Expense as of December 31, 2020?

• $105

• $50.40

• $147

• none of the above

At the beginning of Year 1, the Supplies account had a debit balance of $2,300. During the year, the business purchased $900 of supplies. An inventory count at the end of the year revealed that $650 of supplies remained. The adjusting entry as a result of this information is:

• DR Supplies Expense $1,650, credit Supplies $1,650

• DR Supplies Expense $3,850, credit Accumulated Depreciation -Supplies $3,850

• DR Supplies Expense $750, credit Supplies $750

• DR Supplies Expense $2,550, credit Supplies $2,550