Which of the following transactions will result in the recognition of an expense?

a) Common Stock issued

b) Expiration of prepaid insurance

c) Purchase of land

d) Declaration and payment of a dividend

e) Accrual of Revenue

Accrual of an expense results in what net effect to the following?

a) b) c) d) e)

Liabilities Increased Unchanged Increased Unchanged Decreased

Owners Equity Unchanged Decreased Decreased Unchanged Increased

Accrual of a revenue results in: Total Assets

Total Liabilities Increased Decreased Increased Unchanged Unchanged

a) b) c) d) e)

Increased Decreased Increased Unchanged Increased

12. Recognition of revenue previously collected will cause what journal entry to what type of account?

a) b) c) d) e)

Debit Revenue Liability Asset Equity Liability

Credit Asset Asset Equity Asset Revenue