QUESTION 18 Using accrual accounting, expenses are recorded and reported only: a. if they are paid before they are incurred. b.when they are incurred, whether or not paid in cash. c. when they are incurred and paid at the same time. d. if they are paid after they are incurred. QUESTION 19 Assured Inc. provided services of $1,000,000 to clients on account. How does this transaction affect Assured's accounts? a. Accounts receivable and revenues increase by $1,000,000 each b. Revenues and accounts payable increase by $1,000,000 each. Cash and revenues increase by $1,000,000 each. d. Accounts receivable and unearned revenues increase by $1,000,000 each. QUESTION 20 A landscaping firm receives $3,000 from a customer to perform services for the months of June, July, and August. Of the $3,000, how much should be recognized on the income statement as revenue for the month of June? a. $0 b. $1,000 c. $3,000 d. $2,000 QUESTION 21 The balance in the office supplies account on September 1st was $7,200. Supplies purchased during the month were $3,500. The supplies on hand at September 30th were $2,500. The amount of supplies expense for the month of September was: a $6,200 b. $13,200 c. $3,500 d. 58,200 QUESTION 22 On April 1st, Bear Inc. paid $2,400 for an insurance premium on a two-year insurance policy. As of the end of the December of the first year, what should be the balance in the prepaid insurance account? a $1,500 b. 50 1,200 d. 5900 QUESTION 23 The liabilities that are to paid in less than one year are called: a. long-term liabilities b. current liabilities c. contingent liabilities di notes payable