A Prepaid Expense Is Which of the Following

Below is the journal entry for prepaid expenses. It reports the remaining amount of the prepaid expense 2200 as an asset on the balance sheet.

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Equipment you pay for before use.

. Solved Answer of MCQ Which of the following adjusting double entries is correct for Prepaid expenses. Rent paying for a commercial space before using it Small business insurance policies. Accounts Receivable and Inventories decreased by 12000 and 35000 respectively.

As prepaid expenses expire with the passage of time the correct adjusting entry will be a a. This is treated as companys asset. Which of the following is NOT a noncash item.

Has cash of 11600 current accounts receivable of 48900 merchandise inventory of 37900 and prepaid expenses totaling 5100. Tap card to see definition. 2 Prepaid expenses are those expenses which is paid by the company prior its due period.

The following list shows common prepaid expenses examples. Accounts Receivable and Inventories decreased by 12000 and 35000 respectively. An entity initially records this expenditure as a prepaid expense an asset and then charges it to expense over the usage period.

1 Buildings are the companys fixed assets. Which of the following statements is correct. Debit to an expense account and a credit to an asset account c.

Examples of Prepaid Expenses. In contrast to prepaid rent is the rent liability accrued rent. Paid the rent for the current month in cash.

- a Debit Expenses Credit Prepaid expenses - b Debit Prepaid expenses Credit Expenses - c Debit cash Credit Prepaid expenses - d Debit Expenses Credit Cash - Adjustment and Depreciation Multiple Choice Question- MCQtimes. A They are paid for in advance of receiving their benefits. Accounts Payable is increased with a credit.

On the income statement for the year ended December 31 MicroTrain reports which of the following is considered to be unearned revenue one month of insurance expense 200 as one of the expenses it incurred in generating that years revenues. Prepaid expenses appear in the balance sheet. 3 Patents are the intangible asset of the company.

Prepaid expenses Depreciation Prepaid taxes Taxes. Debit to an expense account and a credit to an expense account. Which of the following is the proper adjusting entry based on a prepaid insurance account balance before adjustment of 14000 and unexpired insurance of 3000 for the fiscal year ending on April 30.

13 The difference between an assets cost and its accumulated depreciation is called A. Prepaid Expenses and Accounts Payable increased respectively by 1000 and 8000. Prepaid rent is a mandatory expense to obtain rights to use a property.

Non-current Assets is A Building B Stock C Debtors D Prepaid Expense. At year-end Schultz Inc. Prepaid expenses become expenses only as goods or services are used up.

A Purchase of Computer B Purchase of Fan C Purchase of Furniture D Purchase of Stationery. This problem has been solved. 16 - Which of the following is the account where the increases are recorded to the receivable side and the decreases to the debit sideA Asset AccountsB Passive AccountsC Accounts ReceivableD Expense AccountsE Passive regulating accounts.

Which of the following accounts is. Rent Expense is increased with a credit. Your business purchased office supplies of 2500 on account.

Assume accounts receivable had a beginning balance of 67400 and net credit sales for the current year totaled. The adjusting entry on December 31 is. View Which of the following accounts is considered a prepaid expensepng from ACCT 301 at American River College.

Click card to see definition. Credit Prepaid Insurance 14000. Which of the following statements is not true regarding prepaid expenses.

Debit to an asset account and a credit to an asset account. Prepaid expenses Depreciation Prepaid taxes Taxes. See the answer See the answer See the answer done loading.

Which of the following accout titles will be debited. Debit to an asset account and a credit to an expense account. C When they are used their costs become expenses.

Debit Insurance Expense 14000. Prepaid expenses are those expenses which are paid in advance for a benefit yet to be received. Credit Prepaid Insurance 3000 b.

One of the most common forms of prepaid expenses includes prepaid rent. Debit Insurance Expense 3000. These expenses are mandatory in some industries and companies must adhere to them.

How much cash was provided by operating activities. According to the three types of accounts in accounting prepaid expense is a personal account. Liabilities of 55900 must be paid next year.

Deferred expense prepaid expense Which of the following is any reporting period shorter than a full year fiscal or calendar and can encompass. Supplies insurance and rent are typical examples of prepaid expense among the options. Arun is a Book-seller which item will be goods for his business.

The net income reported on the income statement for the current year was 245000. D The adjusting entry for prepaid expenses increases expenses and decreases liabilities. An example of a prepaid expense is insurance which is frequently paid in advance for multiple future periods.

APrepaid rent bRent payable cRent revenue dRent expense. Prepaid Expenses Buildings Patents. Hence option C is correct.

Prepaid Expenses are decreased with a debit. Salaries unless you run payroll in arrears Estimated taxes. Prepaid expenses represent assets.

161 Which of the following is not true regarding prepaid expenses. B They are assets. The net income reported on the income statement for the current year was 245000.

E The adjusting entry for prepaid expenses increases expenses and decreases. Prepaid Expenses and Accounts Payable increased respectively by 1000 and 8000. Which of the following is NOT a noncash item.

Unearned Revenue is increased with a debit. Prepaid expenses are shown in a special section of the income statement. The perks of such expenses are yet to be utilised in a future period.

Another item commonly found in the prepaid expenses account is prepaid rent.

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