Unformatted text preview: Problem 9-1 SOLUTION For each item in the Account column. determine if the entries in the other three columns are correct.
If all three entries are correct, then circle True. If one or more of the entries are not correct, then
circle False. What makes a question False is shown in Red. Trotie When Does When is Revenue or False Cash Flow? Expense Recognized?
T F 3. Property, Plant Before expense Expense is recognized Equipment & Equipment recognition after cash flows out Accrued Before expense Expense is recognized
Liability recognition after cash flows out T F 4.
T F 5 Unearned Rent Unearned Before revenue Revenue is recognized
' Revenue Revenue recognition after cash flows in
. . Property. Plant After expense Expense is recognized
Bmldmgs 8; Equipment before cash flows out Rent Payable - - Before expense Expense is recognized
Prepald Rent Prepaid Asset recognitiOn after cash ﬂows out
T F 8. Unearned After expense Expense is recognized
Revenue recognition before cash flows out Interest Payable Unearned Ticket Unearned Before revenue Revenue is recognized
Revenue Revenue recognition after cash flows in T F 9. Aims? ..
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- Spring '11