1) Using accrual accounting, expenses are not recorded until the cash for the ex

Question

1) Using accrual accounting, expenses are not recorded until the cash for the expense is disbursed.
True
False

2) The adjusting entry for accrued revenue always involves a:

A.debit to an asset account and a credit to a revenue account

B.debit to a revenue account and a credit to an asset account

C.debit to a liability account and a credit to an asset account

D.debit to an asset account and a credit to a liability account

3) A journal entry contains a debit to the Cash account and a credit to the Unearned Service Revenue account. This is an example of a(n):

A.deferred expense

B.deferred revenue

C.accrued revenue

D.accrued expense

4) The adjusting entry for a prepaid expense always involves a(n):

A. liability account and a revenue account

B.expense account and a liability account

C.expense account and an asset account

D.asset account and a liability account

5) On October 25, 2017 Quick Corp. prints a cheque for November's rent payment. Quick Corp. mails the cheque on October 27 to the landlord. The landlord receives the cheque October 31 and cashes the cheque on November 2. When should Quick Corp. record the rent expense associated with this transaction?

A.November 2, 2017

B.November 30, 2017

C.October 25, 2017

D.October 27, 2017

6) Which of the following transactions would be recorded at the time the transaction occurs under the accrual basis, but would not be recorded until sometime in the future under the cash basis?

A.issuance of stock

B.sale of merchandise on account

C.payment of interest expenses

D.payment of employee salaries

Explanation / Answer

1) Using accrual accounting, expenses are not recorded until the cash for the expense is disbursed.

Above statement is false

2) The adjusting entry for accrued revenue always involves a:

So answer is a) debit to an asset account and a credit to a revenue account

3) A journal entry contains a debit to the Cash account and a credit to the Unearned Service Revenue account. This is an example of a(n):

So answer is b) Deferred revenue

4) The adjusting entry for a prepaid expense always involves a(n):

So answer is c) .expense account and an asset account

Note : As per chegg policy only 4 parts should be answered in one time so please post rest part as individual question

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