Question

1. Which of the following adjusting entries would not be reversed in the following accounting period?

a. an entry that recognized an accrued revenue earned during the current period

b. an entry that transferred a portion of a revenue account to a liability account

c. an entry that recognized an accrued expense of the current period

d. an entry that allocated the expired portion of a long-lived asset to the current year's income statement

(I know that it is not B) please help.

2. The Michael Company has an accounts receivable account in its general ledger, and it also maintains a subsidiary ledger that contains an individual account for each of its customers who buys merchandise on credit. Which of the following statements about the general ledger account is not true?

a. The general ledger account is also called a contra account.

b. The balance of the general ledger account should agree with the total of all of the accounts in the subsidiary ledger.

c. The general ledger account is called a permanent account.

d. The general ledger account is properly referred to as a control account.

(the answer is not c)

thank you!

Answer 1

1. Which of the following adjusting entries would not be reversed in the following accounting period?

d. an entry that allocated the expired portion of a long-lived asset to the current year's income statement

This will not be reversed as it is the expired portion and it is properly recorded in the current year's income statement.

2. The Michael Company has an accounts receivable account in its general ledger, and it also maintains a subsidiary ledger that contains an individual account for each of its customers who buys merchandise on credit. Which of the following statements about the general ledger account is not true?

a. The general ledger account is also called a contra account.

It is not a contra account but a control account.