Which of the following transactions does not involve an accrual? a. Recording interest earned that will be received in the next period. b. Recording operating expense incurred but not yet paid. c. Recording salary expense incurred but not yet paid. d. Recording the pre-payment of two years' worth of insurance.

Which of the following transactions does not involve an accrual? a. Recording interest earned that will be received in the next period. b. Recording operating expense incurred but not yet paid. c. Recording salary expense incurred but not yet paid. d. Recording the pre-payment of two years' worth of insurance.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter12: Current Liabilities

Section: Chapter Questions

Problem 13MC: Which of the following is not a characteristic of a short-term note payable? A. Payment is due in...

See similar textbooks

Related questions

Q: Explain the difference between management accounting and financial accounting.

A: ANSWER : Basis of difference Management accounting Financial accounting 1. Meaning…

Q: what does a financial statement analysis project for introductory financial accounting consist of

A: financial statement analysis project for introductory financial accounting consist of fallowing…

Q: What is the definition of a conceptual framework for financial reporting and discuss its role in…

A: ANSWER:- A conceptual framework for financial reporting is a set of guidelines and concepts that…

Q: Answer the following: Question One: State the accounting equation and define its components with…

A: Accounting refers to the process of recording, processing and eventual communication of financial…

Q: The reporting of accounting theory is related to what?

A: Accounting theory is all related to the preparation of financial statements of the business.…

Q: What is ABC system in accounting? Explain with example?

Q: Critically analyse the components of Financial Statemen

A: Introduction:- Every Component of the Financial Statements provides a unique and useful purpose and…

Q: Briefly define accounting.

A: This question explains about accounting.

Q: explain the purpose and importance of accounting

A: 1. The purpose of Accounting : The purpose of accounting is to gather and report on financial…

Q: Review the basic assumptions of accounting.

A: Financial accounting structure: A system that records, maintains, and creates reports for the…

Q: Is internal accounting information primarily historical orfuture-oriented? How does that compare…

Q: So, what exactly is the purpose of an accounting system?

A: solution accounting system Accounting system in general refers to the system which…

Question

Solve this question with steps please. The subject is fundamental of financial accounting.

Which of the following transactions does not involve an accrual?
a. Recording interest earned that will be received in the next period.
b. Recording operating expense incurred but not yet paid.
c. Recording salary expense incurred but not yet paid.
d.
Recording the pre-payment of two years' worth of insurance.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

compare the current year balance in prepaid insurance and insurance expense with the prior year's balances considering any changes in operations. You said that you would examine reconciliation of the account and segregation of duties, can you give an example as to why?
How would each of the following items be reported on the balance sheet? a. Accrued vacation pay. b. Estimated taxes payable. c. Service warranties on appliance sales. d. Bank overdraft. e. Employee payroll deductions unremitted. f. Unpaid bonus to officers. g. Deposit received from customer to guarantee performance of a contract. h. Sales taxes payable. i. Gift certificates sold to customers but not yet redeemed. j. Premium offers outstanding. k. Discount on notes payable. l. Personal injury claim pending. m. Current maturities of long-term debts to be paid from current assets. n. Cash dividends declared but unpaid. o. Dividends in arrears on preferred stock. p. Loans from officers.
Classify the following items as: (1) prepaid expense, (2) unearned revenue, (3) accrued expense, or (4) accrued revenue. a. Fees received but not yet earned. b. Fees earned but not yet received. c. Paid premium on a one-year insurance policy. d. Property tax owed to be paid beginning of next year. Indicate with a Yes or No whether or not each of the following accounts would, under normal circumstances, require an adjusting entry. 1. Cash 2. Prepaid Expenses 3. Depreciation Expense 4. Accounts Payable 5. Accumulated Depreciation Yes 6. Equipment
Which among the following is an example of prepaid expense? a. Insurance paid in advance for the whole year b. Insurance not paid c. Insurance paid for current month d. Insurance to be paid next year
Using the allowance method, the effect on the current year’s financial statements of writing off an account receivable generally is to a. Decrease total assets.b. Decrease net income.c. Both a. and b.d. Neither a. nor b.
Question: 1. Under the allowance method, Accounts recorded Uncollectible Expense is a. for an estimated amount. b. when an individual account is written off. c. for a known amount. d. several times during the accounting period.
Which of the following types of adjusting entries would result in a decrease in the amount of a one-year insurance policy premium reported on the balance sheet? Select one: O a. Prepaid expense b. Accrued expense C. Accrued revenue d. Unearned revenue
12. Which of the following events would not require a journal entry? a Purchase of a one-year insurance policy? b Agreement to perform a service at a future date. c Performance of a service agreed to be paid on a later date. d Payment for a service performed previously.
Which of the following entries will be necessary to close the Insurance Expense account at the end of the year? A. debit Income Summary and credit Insurance Expense B. debit Common Stock and credit Insurance Expense C. debit Insurance Expense and credit Common Stock D. debit Insurance Expense and credit Income Summary
Which of the following adjusting entries involves the recognition of an accrued expense? a. recording depreciation on a long-lived asset b. writing off the portion of an insurance policy that has expired c. recognition of salaries owed to employees for work done during the current period that will be paid during the next accounting period d. recognition of bad debt losses that are expected to result from making sales on credit terms
Identify whether each of the following transactions, which are related to expense recognition, are accrual, deferral, or neither. A. paid an expense for the current month B. prepaid an expense for future months C. made a payment to reduce accounts payable D. incurred a current-month expense, to be paid next month
The adjusting entry to record accrued interest expense is: Debit Interest expense and credit Interest Payable. The answer is true or false