A Prepaid Expense Is Which of the Following

Which of the following statements is FALSE. Debit- Prepaid Expense Asset Credit- CashBank.

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Prepaid expenses become expenses only as goods or services are used up.

. Cash is the most liquid asset. Rikazzz May 9 2021 Adjustment and Depreciation. Prepaid expense is expense paid in advance but which has not yet been incurred.

When a future expense is paid in advance the payment is normally recorded in a liability account called Prepaid Expense. Dianes Designs purchased a one-year liability insurance policy on March 1 of a year for 8400 and recorded it as a prepaid expense. Debit to an asset account and a credit to an expense account.

According to the three types of accounts in accounting prepaid expense is a personal account. Supplies insurance and rent are typical examples of prepaid expense among the options. D The adjusting entry for prepaid expenses increases expenses and decreases liabilities.

Prepaid expenses appear in the balance sheet. Prepaid expenses represent assets. The perks of such expenses are yet to be utilised in a future period.

View Which of the following accounts is considered a prepaid expensepng from ACCT 301 at American River College. Assume accounts receivable had a beginning balance of 67400 and net credit sales for the current year totaled. At year-end Schultz Inc.

Liabilities of 55900 must be paid next year. Debit Expenses Credit Cash. B They are assets.

Over time the expired portion of prepaid accounts is removed from the account and reported as an expense. B Debit Prepaid expenses Credit Expenses. 161 Which of the following is not true regarding prepaid expenses.

Liabilities of 55900 must be paid next year. Experts are tested by Chegg as specialists in their subject area. Assume accounts receivable had a beginning balance of 67400 and net credit sales for the current year totaled.

Following accounting entry is required to account for the prepaid expense. Prepaid Expenses are decreased with a debit B. Expense must be recorded in the accounting period in which it is incurred.

E The adjusting entry for prepaid expenses increases expenses and decreases. Prepaid rent Rent expense b. How much cash was provided by operating activities.

Debit to an expense account and a credit to an expense account. The unexpired portion of prepaid accounts are treated as assets. Assets increased with a debit.

Who are the experts. Retained earnings Cost of goods sold Wages expense. Salaries expense Salaries payable C.

At year-end Schultz Inc. As the benefits of the expenses are recognized the related asset account is decreased and expensed. A They are paid for in advance of receiving their benefits.

If consumed over multiple periods there may be a series of corresponding charges to expense. Wages are seldom prepaid since employees may not fulfill their obligations if they receive their wages before doing their work. Cash Utilities expense Accounts receivable.

Which of the following statements is not true regarding prepaid expenses. Unearned Revenue is an liability account. Which of the following is NOT an adjusting entry.

Prepaid expenses are future expenses that are paid in advance and hence recognized initially as an asset. Below is the journal entry for prepaid expenses. Which of the following accounts is.

Accounts Payable is increased with a credit. C When they are used their costs become expenses. Prepaid expenses are shown in a special section of the income statement.

Which of the following statements is correct. Increase in withdrawal is. Prepaid expenses Wages payable Dividends.

Which of the following statements is correct. As prepaid expenses expire with the passage of time the correct adjusting entry will be a a. 100 32 ratings Answer --Prepaid expenses or prepaid asset accounts are those accounts for.

Rent Expense is increased with a credit D. Prepaid expenses are those expenses which are paid in advance for a benefit yet to be received. The most common types of prepaid expenses are prepaid rent and prepaid insurance.

Prepaid expenses are advance payments to cover future expenses such as rent expense. Has cash of 11600 current accounts receivable of 48900 merchandise inventory of 37900 and prepaid expenses totaling 5100. Definition of Prepaid Expenses.

The expired portion of prepaid accounts is reported on the income statement as an expense. Accounts Receivable and Inventories decreased by 12000 and 35000 respectively. A prepaid expense is an expenditure paid for in one accounting period but for which the underlying asset will not be consumed until a future period.

Has cash of 11600 current accounts receivable of 48900 merchandise inventory of 37900 and prepaid expenses totaling 5100. Credit Prepaid Rent 8000. Unearned Revenue is increased with a debit C.

We review their content and use your feedback to keep the quality high. The net income reported on the income statement for the current year was 245000. Debit Rent Expense 8000.

The difference between the balance of a fixed asset account and the related accumulated depreciation account is termed. Debit to an asset account and a credit to an asset account. The entry to adjust for the cost of supplies used during the accounting period is.

Prepaid Expenses is an asset account. Prepaid Expenses and Accounts Payable increased respectively by 1000 and 8000. Current assets are always reasonably expected to be realized in cash or consumed in the business after twelve months from the reporting date.

Unearned revenue Cash restricted for payment. Debit to an expense account and a credit to an asset account c. Which of the following amounts would be recorded as insurance expense during the adjusting process at the end of Dianes first month of operations on March 31.

When the asset is eventually consumed it is charged to expense. Cash Uneamed revenue Interest expense Interest payable d. Tagged Senior Auditor and Junior Auditor Preparation.

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