Choose the correct statement below: A. Unearned income is income earned and already collected. B. Contra asset is an account shown as an addition to the asset. C. Prepaid expenses are expenses paid and already incurred. D. Accrued expenses are expenses already incurred but not yet paid.

Q: Income Statement 1) Why are items such as sales and labour/Gross Profit on the CR side and items…

A: 1.Revenues are recorded in the credit side of the income statement. Thus, sales and labour/gross…

Q: Which of the following statements is true regarding accrual accounting? Multiple Choice Revenue is…

A: Accrual accounting: Accrual accounting is a accounting method which says the entity should record…

Q: Under an accrual accounting system, an expense is recognized when O A. a good or service is used or…

A: Accrual accounting system: Accrual accounting system means recording income and expense when…

Q: Which Expense account is usually shown as the last Expense item on the Income Statement, regardless…

A: INCOME STATEMENT income Statement is one of the Important Financial Statement of the Company. It…

Q: True or false The income or loss reflected in the Income Statement is the result of the application…

A: The major accounting concepts are enumerated as below : a) Accrual  b) Consistency c) Going concern…

Q: Need the Correct answer

A: Step 1: Introduction Accrual Accounting:Accrual accounting is the accounting basis used by large…

Q: b.) Credit

A: Prepayment is an accounting term referred to the types of expenses not incurred yet but for which…

Q: Which of the following is NOT considered an accrued expense account? Interest Expense Rent Expense…

A: The correct answer is Option (C) Depreciation expense because the depreciation is an adjusting entry…

Q: Which of the following equations expresses the definition of “income”?   Choices; Income = Revenues…

A: Revenues - It is the amount of money received through sale of goods and services . Gains - It is the…

Q: The owner's contributions and withdrawals are reported on the income statement. True. False.

A: The income statement is a part of the financial statement. It includes all the revenue and expenses.…

Q: Accounting type Question: Income received in advance is a A. An asset B. An income C. A liability D.…

A: Income received in advance is accounted for as a liability because the amount received cannot be…

Q: Which one of the following statement is TRUE? a. Cash is non-current asset b. Outstanding expenses…

A: Current assets are all those assets that are realizable to cash within one year such as accounts…

Q: Uncarned revenues are received and recorded as liabilities before they are earned. earned and…

A: Unearned Revenue: Unearned Revenue means money received from the customer in advance for the service…

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: Accrual Accounting - The Matching Concept How can expenses be recognized in the income statement…

A: The matching concept is a fundamental principle in accounting that requires the recognition of…

Q: The income statement includes Group of answer choices -expenditures, net worth, surplus or deficit.…

A: Income statement is one of the financial statements that helps in depicting the profitability of an…

Q: Which of the following accounts is a non-current asset account?

A: Non-current assets:   Non-current assets are assets that can be held for a longer period of time…

Q: Expenses paid and recorded as assets before they are used are called   Select one: a.  interim…

A: Expenses incurred in the interim period of an aggregate expense. It is known as interim expense.…

Q: Which statement is incorrect? A. Deferred income-beginning

A: Prepaid Expenses -: Prepaid Expenses are forthcoming expenditures that have been reimbursed in…

Q: 1. Which T-account is incorrect? a. Depreciation Expense b. Interest Receivable c. Capital Stock d.…

A: The T-accounts are prepared as debit on left side and credit on right side.

Q: What is false about the matching principle? a. Incurred expenses should be matched with earned…

A: Matching principles are those principles which emphasize on matching of revenues of the business…

Q: None

A: Step 1: Explanation for Correct option Net Asset Value is a financial metric used primarily with…

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

A: Financial Accounting:   It refers to the process of recording the financial transactions of the…

Q: Accrued expenses (accrued liabilities) are: C . expenses that have been reported on the income…

A: An accrued expense is an expenditure reported in the time in which the expense is incurred that is…

Q: The adjustment for accrued expense eliminates the understatement in

A: The correct answer is: (D) Owner’s equity  Accrued expenses are expenses that have been incurred,…

Q: Under accrual basis of accounting, revenue is recognized when ______________ and expenses are…

A: Accrual basis of Accounting recognises when transactions take place. Under accrual basis accounting…

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: Unearned revenues O a. are recorded as assets when cash is received. O b. are referred to as future…

A: Revenue is the total income earned by a company by selling all its goods or services. It is recorded…

Q: Which of the following is not included under other income? a. Rent received b. Commission received…

A: OTHER INCOME: IT IS THE INCOME THAT DOES NOT COME FROM THE FIRMS MAIN BUSINESS.

Q: In adjusting the accrual basis net income to cash basis net income under the indirect method, all…

A: >Statement of Cash flows is one of the financial statements, and is prepared for a particular…

Q: An accrued expense can best be described as an amount Paid and currently matched with earnings…

A: Solution Concept Accrued expense Accrued expense means the expense that has already been incurred…

Q: Which of the following accounts is typically considered a contra-asset account in financial…

A: A contra-asset account is an accounting entry that reduces the value of an associated asset…

Q: Which one of these statements is true of the accumulated depreciation account? O the account is to…

A: Accumulated depreciation is the total of depreciation applied on a fixed asset on a particular point…

Q: Which Expense account is usually shown as the last Expense item on the Income Statement, regardless…

A: Income statement will be prepared  before the  preparation of the statement of owner’s equity…

Q: Expense items that have been incurred but not yet recorded in the accounts are: A) unearned…

A: Revenues received in advance and not performed are called unearned revenues. Hence, option A is…

Q: 4. Which of the following is not an element of a statement of comprehensive income? a. Interest…

A: The question is multiple choice question. Required  Choose the Correct Option.

Q: Accrual accounting recognizes revenue and expenses when they are incurred, regardless of when they…

A: Accrual accounting is a method of accounting that recognizes revenue and expenses when they are…

Bookkeeping

Bookkeeping is the process of recording the financial transactions of a company on a regular basis. With the process of bookkeeping, companies can track important financial information that helps management in making crucial decisions.