1.As Unearned Rent Revenue is earned, it becomes

a) an asset.

b) a revenue.

c) a liability.

d) an expense.

2. When counting supplies, several boxes were missed. This would cause:

a) Supplies to be overstated.

b) Supplies Expense to be overstated.

c) net income to be overstated.

d) Inventory to be understated.

3. The first entry to adjust Merchandise Inventory includes:

a)a debit to Merchandise Inventory.

b)a credit to Merchandise Inventory.

c)a credit to Income Summary.

d)a credit to Purchases.