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A deferral Multiple Choice exists when a company pays cash after recognizing the associated expense. exists...
An accrued expense occurs when: Multiple Choice O Cash payment (or an obligation to pay cash) occurs before the exp O An expense is recorded at the same time as the cash payment. O The expense is recognized before the payment of cash. O Cash is paid but an expense is never recorded. < Pr On July 1, 2021, Charlie Co. paid $18,000 to Rent An Office for rent covering 18 months from July 2021 through December 2022. What adjusting...
Unearned revenues are generally Multiple Choice 0 Liabilities created when a customer pays in advance for products or services before the revenue is earned. 0 Revenues that have been earned and received in cash. 0 Revenues that have been earned but not yet collected in cash 0 Increases to owners' capital
When a company pays cash, does it always have to record or recognize an expense?
What happens when merchandise is delivered FOB Destination? Multiple Choice The seller pays the freight cost. The seller pays the freight cost and records an expense. The seller records transportation-out expense. The buyer pays the freight cost.
When a company pays $1,900 dividends to its stockholders, the transaction should be recorded as: Multiple Choice O Debit Dividends; Credit Cash. Debit Dividends, credit Accounts Payable. o o Debit Cash, credit Dividends. Debit Retained Earnings, credit Dividends.
A liability for dividends exists: Multiple Choice When cumulative preferred stock is sold. On the date of declaration. On the date of record. On the date of payment. For dividends in arrears on cumulative preferred stock.
Which of the following journal entries is correct when a business entity pays cash for advertising to be used next year? Multiple Choice Cash xxx Advertising expense xxx Advertising expense xxx Cash xxx Cash xxx Prepaid advertising expense xxx Prepaid advertising expense xxx Cash xxx
What is the purpose of the accrual basis of accounting? Multiple Choice Recognize revenue when it is collected from customers. Match assets with liabilities during the proper accounting period. Recognize expenses when cash disbursements are made. Recognizing revenue when it is earned and expenses when they are incurred, regardless of when cash changes hands.
Which account is most unlikely to be credited when an expense is recorded? Multiple Choice O O Cash O O Accounts Payable Accounts Receivable An account with the word "Prepaid" in its title A prepayment of rent for the next three months (not including this month): Multiple Choice decreases stockholders' equity. O increases expenses a has no effect on total assets. reduces total assets.
Which of the following most likely occurs when an inflationary gap exists? Multiple Choice Producers will use overtime shifts and strain capacity. More layoffs. Rising inventories Excessive saving