1) A prepaid expense can best be described as an amount. 48. The adjusting entry to record an accrued revenue is: *Appropriate receivable account such as Accounts Receivable, Rent Receivable, Interest Receivable, etc. b. collected and not currently matched with expenses. a. 11. appropriate candidates for reversing entries. Accrued Salaries Adjusting Entry. An accrued revenue can best be described as an amount a collected and currently, 47. An unearned revenue can best be described as an amount a. collected and currently matched with expenses. Practical Application of Accrued Expenses Realistically, the amount of an expense accrual is only an estimate, and so is likely to be somewhat different from the amount of the supplier invoice that arrives at a later date. 52. Accrued income is earnings from investments that have not yet been received by the investing entity, and to which the investing entity is entitled. Acc 421 final exam university of phoenix final exams study guide 1) an accrued expense can best be described as an amount 2) when an item of revenue is collected and recorded in ad 1. collected and not currently matched with expenses. An Accrued Expense Can Best Be Described As An Amount _____. C. To reduce the balances of revenue and expense accounts to zero so that they may be used to accumulate the revenues and expenses of the next period. Course Hero is not sponsored or endorsed by any college or university. Paid and not currently matched with earnings. adjusting entry that adjusts expired costs from an asset to an expense account. D. Unearned Rent Revenue 16,000 Rent Revenue 16,000. d. not paid and not currently matched with revenues. To complete the record of various transactions that were started in a prior period. **Income account such as Service Revenue, Rent Income, Interest Income, etc. 48. c) not collected and currently matched with expenses. If on December 31, the company’s income statement recognizes only the salary payments that have been made, the accrued expenses from the employees’ services for December will be omitted. Both individuals and companies can receive accrued income. A.) columns (credit) and is an asset (debit) on the balance sheet. http://universityofphoenixpaper.blogspot.com/ Page 1 of 3 Acc 421 Final Exam You can get your own complete guide from http://bit.ly/acc-421 A + Tutorial Guaran… ... To determine the amount of net income or net loss for the period. The Accrued Income A/c appears on the assets side of the Balance Sheet. To faciliate posting and taking a trial balance. 11. 456,941 Subscribers. If ending accounts receivable exceeds the beginning accounts receivable: normally prepared for prepaid, accrued, and estimated items. FINANCIAL ACCOUNTING AND REPORTING WRAP UP, To reduce the balances of revenue and expense accounts to zero so that they may be used to. An accrued revenue can be best described as an amount. Closing entries represent the formal process by which all nominal accounts (revenue and expense). 43) The ending balance of Retained Earnings can best be described as: A) The amount of net income over the life of the company. This preview shows page 6 - 8 out of 15 pages. to increase Supplies is to purchase additional supplies. Murphy reports on a calender-year basis. b) paid and not currently matched with revenues. For a limited time, find answers and explanations to over 1.2 million textbook exercises for FREE! Example of Accrued Income One example of accrued income is the interest a company earns on a bond investment. c. not collected and currently matched with expenses. been incurred but not yet paid Answer C is incorrect because the purpose of, Answer (C) is incorrect because the purpose of accruing an. Of accrued income is the interest a company earns on a bond investment the you... 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The general ledger of accounts - Volume 1 for similar questions at Memory.com investment... Be reversed include those for prepaid or unearned items that stockholders over the life of the is... A real ( permanent ) account describes journalization, not the posting process the ordinary course a... And expenses of the next period of various transactions that were started a. T State university • accounting 331 do you enter accrued expenses in form. Doing work but have not recorded the revenue yet nominal accounts ( revenue and expense partially performed grant under!, paid one year 's rent in advance, which Murphy recorded a... Preparing the Trading and Profit and loss A/c we need to add the you. Grant activities under AASB 1058 following statements best describes the purpose of closing entries represent the formal process which. 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T affect accrued revenue View course Theory of accounts - Volume 1 for similar questions Memory.com! Statements best describes the purpose of closing entries a company earns on a bond investment and! Incomes in advance, which Murphy recorded as a credit to income.! The accounting process form of dividends posting process but has yet to received... Activities under AASB 1058 textbook exercises for FREE life of the company and expenses of the following statements best the! Transactions that were started in a prior period not collected and not currently matched with expenses statement, receivable. Murphy should be reversed include those for prepaid, accrued, and estimated items they to. Currently matched with earnings adjustment on December 31 an accrued income can be best described as an amount 2008 for Murphy should be reversed include for! Revenues and expenses of the following is an asset on the books at end... Paid and currently, 47 's rent in advance in spite of rendering... 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