1. Which of the following would be the effect of a transaction to record the portion of prepaid rent that has expired in a period?

a. increase Prepaid Rent, decrease Rent Expense

b. increase Rent Expense, decrease Cash

c. increase Prepaid Rent, decrease Cash

d. increase Rent Expense, decrease Prepaid Rent .

2. If the company had a loan outstanding, which of the following would be used to record accrued interest at the end of the accounting period?

a. increase Interest Expense, decrease Cash

b. increase Interest Expense, increase Interest Payable

c. decrease Interest Payable, increase Interest Income

d. decrease Interest Payable, decrease Cash

3. On March 31, 2020 Exacto Company paid $5,200 for a 1-year insurance policy. To record this transaction Exacto Company should

a. decrease Cash and increase Insurance Expense.

b. decrease Cash and increase Prepaid Insurance.

c. increase Accounts Payable and increase Insurance Expense.

d. increase Cash and increase Prepaid Insurance.