09 - SOLUTION Problem 9-1

09 - SOLUTION Problem 9-1 - after cash flows in T F 6....

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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 T rue. If one or more of the entries are not correct, then circle F alse. What makes a question F alse is shown in Red . T rue or F alse Account Account Category When Does Cash Flow? When is Revenue or Expense Recognized? T F 1. Prepaid Maintenance Prepaid Asset Before expense recognition Expense is recognized after cash flows out T F 2 . Interest Receivable Accrued Asset Before revenue recognition Revenue is recognized after cash flows in T F 3. Equipment Property, Plant Before expense recognition Expense is recognized after cash flows out T F 4. Rent Payable Accrued Liability Before expense recognition Expense is recognized after cash flows out T F 5. Unearned Rent Revenue Unearned Revenue Before revenue recognition Revenue is recognized
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Unformatted text preview: after cash flows in T F 6. Buildings Property, Plant & Equipment After expense recognition Expense is recognized before cash flows out T F 7. Prepaid Rent Prepaid Asset Before expense recognition Expense is recognized after cash flows out T F 8. Interest Payable Unearned Revenue After expense recognition Expense is recognized before cash flows out T F 9. Unearned Ticket Revenue Unearned Revenue Before revenue recognition Revenue is recognized after cash flows in T F 10. Rent Receivable Accrued Asset After revenue recognition Revenue is recognized before cash flows in T F 11. Prepaid Insurance Prepaid Asset Before expense recognition Expense is recognized after cash flows out T F 12. Unearned Subscription Revenue Prepaid Asset Before revenue recognition Revenue is recognized after cash flows in...
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This note was uploaded on 12/17/2010 for the course ACC 311 taught by Professor Charrier during the Fall '08 term at University of Texas at Austin.

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