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act 2291 exam 2

act 2291 exam 2 - Question 1 0 out of 5 points A company...

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Question 1 0 out of 5 points A company purchases a one-year insurance policy on June 1 for $1,260. The adjusting entry on December 31 is Answer Selected Answer: debit Insurance Expense, $525 and credit Prepaid Insurance, $525. Correct Answer: debit Insurance Expense, $735, and credit Prepaid Insurance, $735. Question 2 5 out of 5 points Accrued expenses are ordinarily reported on the balance sheet as Answer Selected Answer: liabilities
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Correct Answer: liabilities Question 3 5 out of 5 points By matching revenues and expenses in the same period in which they incur Answer Selected Answer: net income or loss will be properly reported on the income statement Correct Answer: net income or loss will be properly reported on the income statement Question 4 5 out of 5 points
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Supplies are recorded as assets when purchased. Therefore, the credit to supplies in the adjusting entry is for the amount of supplies Answer Selected Answer: used Correct Answer: used Question 5 5 out of 5 points The balance in the prepaid insurance account before adjustment at the end of the year is $12,000. If the additional data for the adjusting entry is (1) "the amount of insurance expired during the year is $9,500," as compared to additional data stating (2) "the amount of unexpired insurance applicable to a future period is $2,500," for the adjusting entry: Answer Selected Answer: the accounts and amounts would be the same for both (1) and (2) Correct Answer: the accounts and amounts would be the same for both (1) and (2)
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