Quiz 02.38 – Understanding Prepayments
Intermediate Accounting
Spiceland, Nelson, and Thomas
10th Edition
When do prepayments occur?
When do prepayments occur?
What is the adjusting entry when amounts previously recorded as deferred revenues are recognized?
What is the significance of a tenant’s end-of-period adjusting entry that credits the “Prepaid rent” account?
What is the adjusting entry required to record accrued expenses?
What adjusting entry should ILP Services make at their December 31, 2021 year-end for the three-year insurance policy purchased on September 1, 2021?
What is NOT included in permanent accounts?
How are expenses treated when converting an income statement from a cash basis to an accrual basis?
What is a common mistake when converting an income statement from a cash basis to an accrual basis?
How is cash received for services treated when converting an income statement from a cash basis to an accrual basis?
Match the given phrases with their corresponding terminologies, prepayments, perpetual system, etc…