Adjusting entries can be classified as


38. Adjusting entries can be classified as a. postponements and advances. b, accruals and deferrals. c. deferrals and postponements. d. accruals and advances 39. Accrued are: a. incurred but not yet paid or recorded b paid and recorded in an asset account after they are used or consumed c, paid and recorded in an asset account before they are used or consumed. d. incurred and already paid or recorded 40. Accrued revenues are: a. received and recorded as liabilities before they are earned. b. earned and recorded as liabilities before they are received. earned but not yet received recorded. d, earned and already received and recorded. 41 Prepaid expenses are: a. paid and recorded in an asset account before they are used or consumed b. paid and recorded in an asset account after they are used or consumed incurred but not yet paid or recorded d incurred and already paid or recorded Unearned revenues are a, received and recorded as liabilties before they are earned b. earned and recorded as liabilities before they are received c earned but not yet received or recorded. d earned and already received and recorded. 43 Supplies are recorded as assets when purchased. Therefore, the credit to supples in the adjusting entry is for the amount of supplies a. remaining. b. purchased. d either used or remaining.

Answer

1) Adjusting entries can be classified as Solution: accruals and deferrals Explanation: Adjusting entries are generally made at the end of a accounting period to correct accounts prior to issuing a company’s financial statements 2) Accrued expenses are Solution: incurred but not yet paid or recorded Explanation: Accrued expenses refers to those an accounting expenses that are recognized in the books before it is paid for 3) Accrued expenses are Solution: earned but not yet received or recorded Explanation: Accrued expenses refers to those an accounting expenses that are recognized in the books before it is paid for 4) Prepaid expenses are Solution: paid and recorded in an asset account before they are used or consumed Explanation: Prepaid expenses refer to the future expenses that have been already paid in advance. 5) Unearned revenues are: Solution: received and a liability recorded before services are performed Explanation: Unearned revenue refers to a liability for the recipient of the payment 6) Supplies are recorded as assets when purchased. Therefore, the credit supplies is the adjusting entry for the amount of supplies Solution: used

Explanation: Adjusting journal entry would include the credit supplies for the amount it has been used

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