Question

In: Accounting

1. Unearned revenue a.is recorded when services have been performed for the customer. b.is recorded in...

1. Unearned revenue

a.is recorded when services have been performed for the customer.

b.is recorded in an asset account (other than cash) when cash is received.

c.represents future revenue.

d.All of these choices are correct.

2. The adjusting entry to record accrued expenses includes a

a.credit to an expense account.

b.debit to an expense account.

c.credit to an asset account.

d.debit to a liability account.

3. The adjusting entry to record accrued expenses

a.is the same journal entry as recording expenses on account.

b.differs from the journal entry to record an expense payable on account.

c.includes a credit to an expense account.

d.includes a debit to a payable account.

Expert Solution

1. Unearned revenue

Correct Answer = Option c.represents future revenue.
This refers to the cash amount that has been received in advance for services not provided yet.

2. The adjusting entry to record accrued expenses includes a

Correct Answer = Option b.debit to an expense account.

Expense account is debited and respective liability account is credited.

3. The adjusting entry to record accrued expenses

b.differs from the journal entry to record an expense payable on account.
Instead of crediting ‘accounts payable’ as done on expense payable on account, respective expense liability account like Interest payable, is credited.

ekkarill92 answered 2 years ago

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