1.If certain assets are partially used up during the accounting period, then: A.nothing is recorded on the financial statements until they are completely used up. B. a liability account is decreased and an expense is recorded.

C.an asset account is decreased and an expense is recorded.

D.nothing is recorded on the financial statements until they are replaced or replenished. 2.When a deferral adjustment is made to an asset account, that asset becomes a(n): A.liability.

B.other asset.

C.revenue.

D.expense. 3.The term, deferral, best describes a situation in which: A.cash is paid in advance of recognizing an expense. B.an expense is recognized before it is paid for with cash.

C.an expense is recognized after cash has been received.

D.a liability is established at the time an expense is recognized. 4.Accrued revenues recorded at the end of the current year: A.often result in cash receipts from customers in the next period.

B.often result in cash payments in the next period.

C.are also called Unearned Revenues.

D.are recorded in the current year when cash is received.