1) Using accrual accounting, expenses are not recordeduntil the cash for the expense is...

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Accounting

1) Using accrual accounting, expenses are not recordeduntil the cash for the expense is disbursed.
True
False
2) The adjusting entry for accrued revenue alwaysinvolves a:
A.debit to an asset account and a credit to a revenueaccount
B.debit to a revenue account and a credit to an assetaccount
C.debit to a liability account and a credit to an assetaccount
D.debit to an asset account and a credit to a liabilityaccount
3) A journal entry contains a debit to the Cash accountand a credit to the Unearned Service Revenue account. This is anexample of a(n):
A.deferred expense
B.deferred revenue
C.accrued revenue
D.accrued expense
4) The adjusting entry for a prepaid expense alwaysinvolves a(n):
A. liability account and a revenue account
B.expense account and a liability account
C.expense account and an asset account
D.asset account and a liability account
5) On October 25, 2017Quick Corp. prints a cheque for November's rent payment.Quick Corp. mails the cheque on October 27 to the landlord. Thelandlord receives the cheque October 31 and cashes the cheque onNovember 2. When should Quick Corp. record the rent expenseassociated with thistransaction?
A.November 2, 2017
B.November 30, 2017
C.October 25, 2017
D.October 27, 2017
**6) Which of the following transactions would be recordedat the time the transaction occurs under theaccrual basis, but would not berecorded until sometime in the future under thecash basis**?
A.issuance of stock
B.sale of merchandise on account
C.payment of interest expenses
D.payment of employee salaries

Answer & Explanation Solved by verified expert

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Answer1 fasle Under accrual accountingexpense are recorded when the expense is incurr Answer2a debit to an asset account and a credit to a revenue account which indicates increase of assets See Answer

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In: Accounting1) Using accrual accounting, expenses are not recordeduntil the cash for the expense is disbursed....1) Using accrual accounting, expenses are not recordeduntil the cash for the expense is disbursed.TrueFalse2) The adjusting entry for accrued revenue alwaysinvolves a:A.debit to an asset account and a credit to a revenueaccountB.debit to a revenue account and a credit to an assetaccountC.debit to a liability account and a credit to an assetaccountD.debit to an asset account and a credit to a liabilityaccount3) A journal entry contains a debit to the Cash accountand a credit to the Unearned Service Revenue account. This is anexample of a(n):A.deferred expenseB.deferred revenueC.accrued revenueD.accrued expense4) The adjusting entry for a prepaid expense alwaysinvolves a(n):A. liability account and a revenue accountB.expense account and a liability accountC.expense account and an asset accountD.asset account and a liability account5) On October 25, 2017Quick Corp. prints a cheque for November's rent payment.Quick Corp. mails the cheque on October 27 to the landlord. Thelandlord receives the cheque October 31 and cashes the cheque onNovember 2. When should Quick Corp. record the rent expenseassociated with thistransaction?A.November 2, 2017B.November 30, 2017C.October 25, 2017D.October 27, 20176) Which of the following transactions would be recordedat the time the transaction occurs under theaccrual basis, but would not berecorded until sometime in the future under thecash basis?A.issuance of stockB.sale of merchandise on accountC.payment of interest expensesD.payment of employee salaries