Question 40

1. What is the adjusting entry for Unearned Rent that is currently recorded in the Rent Revenue account?

a.

debit Rent Revenue; credit Unearned Rent

b.

debit Unearned Rent; credit Rent Revenue

c.

debit Rent Expense; credit Unearned Rent

d.

debit Unearned Rent; credit Prepaid Rent

1 points

Question 41

1. The matching principle requires that expenses be recorded in the same period that the related revenue is recorded.

True

False

Question 42

1. Expenses are recorded when substantial performance has occurred and the risks and rewards of ownership have transferred.

True

False

1 points

Question 43

1. An adjusting entry adjusts revenue so it is reported when it occurred and not when cash is received.

True

False

1 points

Question 44

1. The difference between unearned revenue and accrued revenue is that accrued revenue has been recorded and needs adjusting and unearned revenue has never been recorded.

True

False

1 points

Question 45

1. Debiting Interest Expense and crediting Interest Payable on an outstanding note payable is an example of accrued revenues.

True

False

1 points

Question 46

1. Depreciation Expense is deducted from its related capital asset account on the balance sheet.

True

False

1 points

Question 47

1. The Accumulated Depreciation's account balance is the sum of depreciation expense recorded in past periods.

True

False

1 points

Question 48

1. Accumulated Depreciation accounts are liability accounts.

True

False

1 points

Question 49

1. A contra asset account for Land will normally appear in the balance sheet.

True

False

1 points

Question 50

1. The financial statements are prepared from the unadjusted trial balance.

True

False