ACCT 2014 Chapter 3

Which below describes Accrued Revenue

• has been earned but has not been recorded.

• cash has been received, but services have not been provided

• cash has been paid, but expense has not been incurred

• has been earned, and cash received

In a balance sheet, deferred expense is

• Asset

• Liability

• Owner's Equity

• Expense

The journal entry for an accrued revenue (fees earned) includes a debit to _____ and a credit to ______.

• Accounts Receivable, Fees Earned

• Fees Earned, Accounts Receivable

• Accounts Payable, Fees Earned

• Fees Earned, Accounts Payable

Which of the following statements is not true about adjusting entries?

• Adjusting entries should be dated as of the last day of the accounting period.

• An explanation is normally included with each adjusting entry.

• After adjusting entries are made in the journal, they are posted to the ledger.

• Adjusting entries are typically recorded on the last day of the accounting period.

In a balance sheet, accrued expense is

• Asset

• Liability

• Owners Equity

• Expense