Help me please What is the effect of recording an accruedexpense?Increase an expense; decrease an assetO Decrease an expense; increase an assetDecrease an expense; decrease in liabilityIncrease an expense; increase in liabilityPaying a previously recorded utility bill willcause total assets, total Iliabilities and totalowners' equity to: *Remain unchanged, remain unchanged, andremain unchanged, respectivelyDecrease, décrease, and decrease,respectivelyDecrease, decrease, and remain unchanged,respectivelyDecrease, increase, and decrease,respectively

Under the accrual basis of accounting, transactions are recorded as and when they occur irrespective…

Answered: What is the effect of recording an…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter4: The Adjustment Process

Section: Chapter Questions

Problem 4PA: Identify which type of adjustment is associated with this account, and what is the other account in...

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Which should be subtracted from the net income when using the indirectmethod? A. Loss on sale of investmentB. Amortization of patentC. Increase in accounts receivableD. Increase in accounts payable
The resulting amount when total liabilities are subtracted from total assets is known as Select one: O a. Total expenses O b. Net income or net loss Oc. Total revenue O d. Owner's equity
Which option is not a short term adjustment? A. Prepaid expense B. Depreciation C. Income received in advance D. Accrued income Explain your answer
Adjustment for accrued revenue requires a/an choose correct answer a. decrease liabilities increased revenue b. decrease asset decrease revenue c. increase asset increase revenue d. increase liabilities decrease revenues
A decrease in economic benefits or decrease in assets or increase in liability resulting in decrease in equity is termed as. a. Capital b. Income c. Expense d. Liability
How are gain contigencies reported in the financial statements? a. a contingent account receivable b. an accrued revenue c. a deferred revenue d. not at all
What is the effect of overstating the accrued utilities at the end of period? overstated expense and overstated profit overstated expense and overstated liability overstated owner’s equity and understated liability understated owner’s equity and overstated profit answer not given
Identify which type of adjustment is associated with this account, and what is the other account in the adjustment? Choose accrued revenue, accrued expense, deferred revenue, or deferred expense. A. accounts receivable B. interest payable C. prepaid insurance D. unearned rent
Revenue earned but not yet collected is an example of which of the following? A. accrued expense B. accrued revenue C. deferred expense (prepaid expense) D. deferred revenue (unearned revenue)
Expenses represent outflows of assets or increases in liabilities as a result of efforts to produce revenues.
Rent paid in advance is an example of which of the following? A. accrued expense B. accrued revenue C. deferred expense (prepaid expense) D. deferred revenue (unearned revenue)
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

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