On April 30, 2009, a three-year insurance policy was purchased immediately. What is the amount of insurance expense that wo 12. for $18,000 with coverage to begin would appear on the companys statement for the year ended December 31, 2009? A) $500 B) $4,000. C) $6,000. D) $14,000. Incurred but unpaid expenses that are recorded during the adjusting process with a debit to an expense and a credit to a liability are known as accrued expenses 13. A) True. B) False. 14. On January 1. Southwest College recelved $1,200,000 in Unearned Tuition Revenue from its students for the spring semester, which spans four months beginning on January 2. What of tuition revenue should the college recognize on January 31? amount A) B) $600,000. C) $800,000. D) $900,000. E) $1,200,000. $300,000. 15. A company pays each of its two office employees each Friday at the rate of $100 per day for a five-day week that begins on Monday. If the monthly accounting period ends on Tuesday and the employees worked on both Monday and Tuesday, the month-end adjusting entry to record the salaries earned but unpaid is: A) Debit Unpaid Salaries $600 and credit Salaries Payable $600. B) Debit Salaries Expense $400 and credit Salaries Payable $400. C) Debit Salaries Expense $600 and credit Salaries Payable $600. D) Debit Salaries Payable $400 and credit Salaries Expense $400 E) Debit Salaries Expense $400 and credit Cash $400. A company made no adjusting entry for accrued and unpaid employee salaries of $9,000 on December 31. The entry to record the adjusting entry should have been: 16. A) debit Salary Expense, $9,000, credit Cash, $9,000 B) debit Salary Expense, $9,000; credit Fees Earned, $9,000 C) debit Salary Expense, $9,000; credit Prepaid Salary, $9,000 D) debit Salary Expense, $9,000, credit Salaries Payable, $9,000 E) debit Salaries Payable, $9,000; credit Salary Expense,$9,000 17. The advance cash payments of future expenses are called: A) accrued revenues. B) prepaid expenses. C) unearned revenues. D) accrued expenses E) None of the above A) method of spreading the cost of an asset over its useful life. B) method of declining the market value of an asset to its book value. C) method of estimation of an asset's current market value. D) process of sale of a used asset 18. In accounting, depreclation refers to the