Question

In: Accounting

1. Revenues and expenses must be recorded in the accounting period in which they were earned...

1. Revenues and expenses must be recorded in the accounting period in which they were earned or incurred, no matter when cash receipts or outlays occur under which of the following accounting methods?

a. accrual basis accounting

b. cash basis accounting

c. tax basis accounting

d. revenue basis accounting

2. Which type of adjustment occurs when cash is not collected or paid, but the related income or expense is reportable in the current period?

a. accrual

b. deferral

c. estimate

d. cull

3. Rent collected in advance is an example of which of the following?

a. deferred revenue (unearned revenue)

b. accrued expense

c. accrued revenue

d. deferred expense (prepaid expense)

4. Rent paid in advance is an example of which of the following?

a. deferred expense (prepaid expense)

b. accrued expense

c. accrued revenue

d. deferred revenue (unearned revenue)

Expert Solution

ekkarill92 answered 1 year ago

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