Accounting III - Chapter 21

Front

To record revenue that has been received but not yet earned, an entry is made that increases a liability account.

Back

True

Front

An expense that is paid in advance is recorded as an asset until the expense is incurred

Back

True

Front

The reversing entry for accrued interest expense increases the balance of Interest Payable

Back

False

Front

The adjusting entry for deferred rent income results in a debit to Rent Income

Back

False

Front

The reversing entry for accrued interest income increases the balance of Interest Receivable

Back

False

Front

After adjustments at the end of the fiscal period, the balance in Unearned Rent Income represents the rent still unearned.

Back

True

Front

Accounting procedures require that revenue and expenses be recorded in the accounting period in which revenue is earned and expenses are incurred.

Back

True

Front

After adjustments at the end of a fiscal period, the balance in Prepaid Rent represents the amount of rent expense for the current fiscal period

Back

False

Front

The entry to journalize the adjusting entry for unearned rent revenue that has now been earned is

Back

debit Unearned Rent Income; credit Rent Income

Front

When reversing entries are used, and a note payable that was signed in a previous fiscal period is paid, what happens? Options: Interest Payable is credited for the amount of interest incurred in the current fiscal year, Interest Payable is credited for the total amount of interest incurred during the full term of the note, Interest Expense is debited for the amount of interest incurred in the current fiscal year, Interest Expense is debited for the total amount of interest incurred during the full term of the note

Back

Interest Expense is debited for the total amount of interest incurred during the full term of the note