Comments:5.Question: Under the accrual basis of accounting, the receipt of cash from a customer in advance of performing the service would be credited to a(n) _______. Your Answer:accrued revenue accountprepaid asset accountdeferred revenue accountCORRECTdeferred asset account
Points Received:1 of 1Comments:6.Question: Accrued expenses are expenses that have_______.
CORRECT ANSWERPoints Received:(not graded)Comments:7.Question: Accruals involve the recording of an expense or a revenue account_______.
Points Received:1 of 1Comments:8.Question: At the end of the fiscal period, Burton Company omitted the adjusting entry for depreciation on equipment. The effect of this error on the financial statements is to_______.
CORRECT ANSWERPoints Received:0 of 1Comments:9.Question: If a required prepaid adjustment had not been made, the financial statements would have been affected as follows_______. Your Answer:net income understated, assets understated, liabilities understated, and owner’s equity unaffectednet income understated, assets unaffected, liabilities overstated, and owner’s equity understatednet income overstated, assets understated, liabilities understated, and owner’s equity unaffected