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McGraw-Hill Connect Smart Book Questions - Chapter 3 well answered already passed
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McGraw-Hill Connect Smart Book Questions - Chapter 3 well answered already passed
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McGraw-Hill Connect SmartBookQuestions - Chapter 3
Adjusting entries ensure that assets in the balance sheet are reported at amounts that have been used
up or expired during the period. - correct answer ✔✔False
Which of the following would be referred to as "accruals?" - correct answer ✔✔Expenses incurred, not
yet paid
Goods and services provided, not yet collected
A prepayment that is originally recorded as an asset will be ______. - correct answer ✔✔allocated to
future accounting periods based on the cost of the asset used during the period
Adjusting entries help to ensure that all ______ are recorded in the period in which they are incurred. -
correct answer ✔✔expenses
Adjusting entries ensure that ______ balances are reported at amounts representing the economic
benefits that remain at the end of the period. - correct answer ✔✔asset
Initially a prepayment for items such as rent or insurance are recorded as assets and later are recorded
as a(n) ______. - correct answer ✔✔expense
_____ occur when the cash flow occurs after either the expense is incurred or the revenue is earned. -
correct answer ✔✔accruals
True or false: Adjusting entries ensure that assets in the balance sheet are reported at amounts that
have been used up or expired during the period. - correct answer ✔✔false (Adjustments remove the
value of assets that have been used up or expired during the period, leaving a balance that represents
the economic benefit remaining in the account.)
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