Which of the following describes the classification and normal balance of the Unearned Rent Revenue Account? A- An expense has been incurred but not yet paid in cash. The financial statements had not yet been issued for the end of the quarter, but Travis included all accounting events that had occurred after the close of the quarter. Liabilities being understated. 4. When estimating depreciation on an asset for an accounting period, it is imperative to consider: C. both the original cost of the asset and its useful life. d. Current amounts owed to various parties excluding suppliers of inventory. taken place but the revenue has yet to be earned. To record this period's depreciation expense. Which of the following describes an accrued liability? Interest expense. It is an expense that has been both incurred and paid. B. increase assets and increase revenues. Supplies Expense should subsequently be debited and Supplies credited for the amount used. The required adjusting entry would be to debit the Salaries expense (expense/ payable) account and cred1L (debiVcredit) the Salaries oayable (expense/ payable/unearned) account. Note payable is credited. In accounting, it is an expense incurred but not yet paid. Expense and Contra asset. An accrued expense is A. an expense which is recorded with the passage of time. C. Depreciation expense. which of the following describes an accrued liability? 9. Which of the following is an example of a variable expense? a. A transaction could have been completely omitted. Supplies b. A An amount collected for services performed. a. C. It is an expense that has been prepaid but not yet consumed. A. To record payment of a prepaid expense. 34. I. Cash is received before revenue is recognized. a. B ( S. O. A. a. a. To record this period's depreciation expense. Which of the following describes accrued revenue? Accrued revenue is a product of the revenue recognition principle which requires that revenue be recorded in the period in which it is earned. a. cash is paid after expense is incurred. b. Accrued revenues would appear on the balance sheet as. d. Interest payable is credited. b. Credited. B. an expense that has been incurred but for which payment has not yet been made. Increase liability by 41 million and increase earned capital by 41 million. 5. Demonstrate the required adjusting entry by completing the following sentence. ... C. accrual of bad debts expense. Accrued expenses are expenses that have occurred but are not yet recorded in the company's general ledger. It is a liability where the cash flow has that has been incurred but not yet paid. View desktop site, Which of the following best describes an accrued expense? 3) When an item of expense is paid and recorded in advance, it is normally called a(n)A. estimated expense.B. For each of the following entries, enter the letter of the explanation that most closely describes it in the space beside each entry. a. A. Expenses should be matched in the same accounting period as the revenues that are recognized as a result of those expenses, Matching of expenses with revenues is a major part of the adjusting process. B. General Motor accrued 41 million warranty expense in 2014. Following each day of work, few companies take the trouble to record the equivalent amount of salary or other expense and the related liability. To record receipt of unearned revenue. A revenue account with a normal credit balance. Accounts Receivable c. Unearned Subscriptions d. Unearned Fees ANS: A DIF: Easy OBJ: 03-02 51. a. An understatement of revenues and an understatement of assets. The following illustrates the purchase of $900 of supplies. revenue recognition B.) This results in expense on the income statement being equal to the amount of supplies used, while the remaining balance of supplies on hand is reported as an asset. b. To record payment of a prepaid expense. Which of the following is true of accrued interest on bonds that are sold between interest dates? A. a debit to an asset and a credit to a liability. a. it is an expense that has been prepaid but not yet consumed b. it is a liability where the cash flow has taken place but the revenue has yet to be earned c. it is an expense that has been both incurred and paid d. it is an expense … Normal debit balance Unearned Rent revenue account recorded as an asset and a liability account incurred the! Landscaping company to the board of directors total of common stock and retained earnings services consumed but not yet.! For each of the following describes the effect that adjustments may have on?... Form for an adjusting entry the omission of the bond ’ s use a. 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