Question 1 An accrued expense can be best described as an amount Paid and not currently matched with earnings (B) Paid and currently matched with earnings (C) Not paid and not currently matched with earnings Not paid and currently matched with earnings Question 2 What is the formula for the straight-line method of depreciation? (A) Depreciable value / Estimated useful life B) (Residual value + Cost)/Estimated useful life (Transaction cost-Estimated useful life)/Salvage value (D) Cost/Estimated useful life Question 3 1 Point 1 Point 1 Point During the year, the company received an advance payment from one of its tenants. The said rent is applicable for 18 months which will commence on the beginning of the next accounting period. The appropriate presentation of this advance payment in the company's financial statement at the end of its current accounting period is A Asset-under Prepaid Rent Liability-under Unearned Rent Revenue-under Rent Revenue Expense- under Rent Expense Question 4 Statement I: Failure to record accruals would result to misstatements in net income. Statement II: Owner's Equity will decrease due to accrual of rent revenues. (A) Both Statements are TRUE B) Both Statements are FALSE (C) Only Statement is TRUE (D) Only Statement II is TRUE 1 Point Question 5 Adjusting entries are need for all the following reasons except (A) Some events are not journalized daily. B Some costs are not journalized during the accounting period (C) Some items may be unrecorded All the statements are true Question 6 An unearned revenue can be best described as an amount: A Collected and currently matched with expenses Collected and not currently matched with expenses (C) Not collected and currently matched with expenses D Not collected and not currently matched with expenses 1 Point. 1 Point