Which of the following is an example of a prepaid expense? Please explain with full explanation. a. Supplies b. Accounts Receivable c. Unearned Subscription Revenue d. Unearned Fees

Q: Which of the following accounts is an asset? Select one: O a. Accounts payable O b. Salary expense…

A: STEP 1 An asset is something or attribute that creates future economic cash flows or benefit arising…

Q: Which of the following accounts does not appear in the acquisition and expenditure cycle?a. Cash.b.…

A: Acquisition and expenditure cycle: It includes a set of all the business activities that are…

Q: Which of the following accounts will be closed with a credit? O a. Fees earned O b. Depreciation…

A: The question is related to Accouts which are closed by crediting them. All the nominal accounts  are…

Q: Which of the following items is not a specific account in acompany’s accounting records?a. Accounts…

A: Accounts receivable is the payment which the company will receive for the goods sold on credit from…

Q: Which of the following accounts is an asset? Select one: a Service revenue b. Prepaid expenses C.…

A: Generally asset represents the valuable thing owned by an entity. In accounting, an asset is the…

Q: The accrued balance in a revenue account represents an amount which is: A. earned and collected B.…

A: Revenues: Revenues are earnings from operations of a business. The operating activities are sale of…

Q: According to accruals rules, when a service is performed, the revenue should be recognized…

A: Solution- Accrual accounting is an accounting method whereby revenue and expenses are recorded in…

Q: Using accrual accounting, expenses are recorded and reported only a.when they are incurred, whether…

A: Under Accrual system of accounting, expenses are recorded in the books of account as they are…

Q: Which among the following is considered as an expense? a. Accounts payable b. Rent expense c. Sales…

A: Expenses means the amount spent on running the business.

Q: Which of the following is an amount for products or services purchased on account? A)accounts…

A: Account payable is the account related to products or services purchased on account. Unearned…

Q: Which of the following is an asset account? O A. Unearned Revenue B. Notes Payable O C. Accounts…

A: Asset accounts means account related to resources of the business that it owns. It can be current…

Q: Which of the following accounts was created as the result of an accrual for expenses?  Group of…

A: Lets start with the basic understanding. Accrual for expense is a liability which is incur because…

Q: Which of the following accounts normally has a debitbalance?a. Unearned Revenueb. Rent Expensec.…

A: correct option is b.) Rent Expense Generally Assets, expenses, losses, and the owner's drawing…

Q: Which among the following accounts will increase with a debit? a. Service revenue b. Capital c.…

A: Debit and credit terms has been used in accounting for various purpose.

Q: What is a prepaid expense and where is it reported in the financial statements?

A: Prepaid expense:   Prepaid expenses are any expenses that is paid before it becomes due. A prepaid…

Q: The account type and normal balance of Prepaid Expense are a.revenue, credit b.liability, credit…

A: Prepaid expenses normally have a debit balance and considered assets.

Q: Which of the following is an example of revenue or expense to be recognized in the current period’s…

A: Income statement forms a part of financial statements and is prepared with a view to show the net…

Q: What kind of account is Unearned Revenue?a. Liability accountb. Asset accountc. Expense accountd.…

A: The correct option is option “a”. Unearned revenue is not classified as an asset, owners' equity,…

Q: The ending balance in the account Deferred Revenues (or Unearned Fees) * ?should report which of the…

A: Deferred revenue seems to be payments from a consumer for upcoming products or services. Since the…

Q: Classify each of the following items as revenues (R), expenses (EX), or withdrawals (W). Rent…

A: Revenues are the amount received from the sale of goods and services.  Expenses are the cost…

Q: Using accrual accounting, expenses are recorded and reported only a.when they are incurred, whether…

A: Under accounting, there are two types of systems that can be used. Cash basis of accounting says…

Q: Which of the following accounts normally has a debit balance? a. Prepaid insurance b. Unearned…

A: There are five important components in the financial statements. They are Assets, Liabilities,…

Q: Using accrual accounting, expenses are recorded and reported only a.if they are paid before they are…

A: The correct option is Option “d”. Using accrual accounting, expenses are recorded and reported only…

Q: which is an example of prepaid expense? A. unearned fees B. supplies C. unearned subscriptions…

A: Prepaid expense:   Expenses of future period are paid in advance. These expenses are called prepaid…

Q: Which of the following is true about accounts payable? Accounts payable are also called trade…

A:

Q: Which item would not appear on a Balance Sheet?     a. Gross Profit b. Accounts Receivable c.…

A: Gross Profit - Gross Profit is defined as net sales minus the cost of goods sold.  Since it shows…

Q: accruals

A: Under Accrual concept, revenue is recognized when it is earned and expense is recognized when it is…

Q: Which of the following accounts is a liability? Accounts Receivable Service Revenue Unearned…

A: Accounts receivables is the amount of money not yet paid by the customers on the goods purchased…

Q: Rent paid in advance can be categorized as a. Deferred expense (Prepaid expense) b. Accrued revenue…

A: Rent paid in advance is a prepaid expense which means this expense hasn't been accrued yet.

Q: Which of the following accounts is considered a temporary or nominal account?A. Fees Earned…

A: There are two type of accounts used in business. One is permanent accounts and other is temporary…

Q: The accounting concept that supports reporting revenues in the period in which they are earned is…

A: Explanation: 1. Revenue recognition concept: As per the revenue recognition concept, revenues are…

Q: Which of the following accounts would need to be closed at the end of the period?a. Cashb. Supplies…

A: A closing entry is a journal entry made at the end of the accounting period. It involves shifting…

Q: Identify whether each of the following accounts is nominal/temporary or real/permanent. Accounts…

A: A permanent account in the general journal does not close at the conclusion of a period is known as…

Q: Which of these transactions requires an adjusting entry (Debit) to Accounts receivable? a. Expenses…

A: Accounts Receivables are debited when the sale is made but ash payment is deferred.

Q: Which of the following is an example of a prepaid expense? a.Unearned Subscription Revenue…

A: Prepaid expense: Expenses of future period are paid in advance. These expenses are called prepaid…

Q: The type of account with a normal credit balance is: Group of answer choices an asset drawing a…

A:

Q: Why are revenue and expense accounts called temporary or nominal accounts?

A: Accounting: Accounting is a system, or a process of collecting and organizing economic transactions,…

Q: Using accrual accounting, expenses are recorded and reported only a.if they are paid before they…

A: As per the cash basis of accounting, we should record the transaction only when corresponding cash…

Q: Which of the following accounts has a normal debit balance? A. Interest Revenue B. Inventory C.…

A: All assets and expense accounts normally have debit balance. All liabilities and incomes would…

Q: Which of the following accounts is a temporary account: a. Salaries expense. b. Accounts receivable.…

A: The temporary accounts are closed at the end of an accounting period.

Q: Which of the following accounts is a liability? a. Accounts Receivable b. Service Revenue c.…

A: Liability refers to state of being liable or taking legal possession of something.

Financial Transaction Analysis

The transaction analysis is done with the help of the accounting equation. The basic accounting equation is alternatively known as the balance sheet equation is based on the double-entry system which says that for each transaction happening in a business, at least two accounts should be affected I.e. both the debit side and the credit side should be equal. The Accounting Equation is