Accounting Adjustments

What is the name of a payment that is made before the expense is due?

(a)  

What is the name of a payment that has accumulated and becomes an additional expense

(a)  

If an insurance expense of $200 is paid as a prepayment for an original amount that was $2000. How much would you record in the income statement?

• 1200

• 1800

• 2200

• 2000

Wages for the month has accumulated to $3500, however we have not yet paid an amount owing of $2000 for last month. How much would you record in the income statement?

• 3500

• 5500

• 1500

• 2000

A person who is unable to pay their debts to an organizations is considered to be a...

(a)  

When a non-current asset loses value over a period of time it is called (a)  

When depreciation accumulates over a period of time it is called...

• Depreciation

• Bad debts

• Provision for depreciation

• Assets

When estimates are made on persons who are expected not to pay their debts it is called...

• Provision for doubtful debts

• Bad debts

• Provision for depreciation

• Assets

Bad debts are recorded in the...

• Income Statement under expenses

• Income Statement under revenues

• Balance sheet under current assets

• Balance sheet under current liabilities

Accrued expenses are recorded in the...

• Income Statement under expenses

• Income Statement under revenues

• Balance sheet under current assets

• Balance sheet under current liabilities