ACC 2 Ch 9 Review

The principal portion of the monthly payments of an installment loan decreases each month

• True

• False

When unearned revenue is recorded, the amount to be received in the future is not yet known.

• True

• False

When cash is received for services, only that part of the service actually earned should be recorded as revenue in a fiscal period.

• True

• False

Unearned Rent is classified as a current liability on the balance sheet.

• True

• False

State laws determine whether a business can recognize unredeemed cards as revenue.

• True

• False

The receipt of cash on an installment note increases Interest Income & Sales.

• True

• False

The amount reported as the Current Portion of Notes Receivable equals the principal portion of payments to be received in the next fiscal period.

• True

• False

If unearned revenue is first recorded as a liability, no adjusting or reversing entry is required.

• True

• False

A business may accept a note receivable from a customer who is unable to pay its account on a timely basis.

• True

• False

The redemption of a gift card results in an increase in sales.

• True

• False