Answered: When, at the end of an accounting…

When, at the end of an accounting period, cash has been paid with respect to an expense, the business should then record: C . an accrued expense, a liability

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter3: Analyzing And Recording Transactions

Section: Chapter Questions

Problem 7Q: What is the effect on the accounting equation when a business pays the balance due on accounts...

See similar textbooks

Related questions

Q: Which of the following is an example of Expense of a business? a. accounts payable. b. cash. c.…

Q: What account will not be found in the trial balance of a company using cash basis of accounting? *…

A: As per the cash basis of accounting the transaction is recorded at the time of inflows or outflows…

Q: What type of accounting recognizes revenues and expenses in the same accounting period that cash…

A: . Accrual basis: It is one of the methods of basis of accounting that records the transactions…

Q: The revenue recognition principle states that all types of incomes should be recorded or recognized…

A: We have the following question: The revenue recognition principle states that all types of incomes…

Q: When, at the end of an accounting period, cash has been paid with respect to an expense, the…

A: When an expense is incurred and cash has not been paid ,expenses are increased and liability also…

Q: Revenue is recorded when services have been performed or products have been delivered to customers.…

A: Introduction: Accounting Principals are created in order to increase the precision of financial data…

Q: Under accrual accounting, when should expenses be matched against revenue? after cash is collected…

A: Accrual basis: Under accrual basis accounting, revenue and expenses are recognized when they are…

Q: a. How to prepare the combined common-size, common–base year balance sheet for company? b. How to…

A: Note: As per our guidelines, only the first question shall be answered a. The combined common…

Q: Which of the following accounts would appear only in an accrual basis accounting system, and which…

A: Cash basis of accounting system : In cash basis of accounting system , the accounts are recorded…

Q: According to accruals rules, when a service is performed, the revenue should be recognized…

A: Solution- Accrual accounting is an accounting method whereby revenue and expenses are recorded in…

Q: Using accrual accounting, expenses are recorded and reported only a.when they are incurred, whether…

A: Under Accrual system of accounting, expenses are recorded in the books of account as they are…

Q: It is a system of accounting for recording transactions, based on record and decreases in accounts…

A: Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…

Q: At the time the transaction occurred, which of the following would result in an increase in net…

A: Basis of accounting is the methodology under which the revenues & expenses are acknowledged in…

Q: The journal entry to record a particular business transaction includes a debit to a liability…

A: A journal entry is used to document a business transaction in the accounting records of a company. A…

Q: Classify the following adjusting entries as involving prepaid expenses (PE), unearned revenues…

A: Adjusting entries: Adjusting entries are those entries which are recorded at the end of the year, to…

Q: Which of the following is an example of revenue or expense to be recognized in the current period’s…

A: Income statement forms a part of financial statements and is prepared with a view to show the net…

Q: When, at the end of an accounting period, cash has not been paid with respect to an expense that has…

A: Cash flows are the cash generated from the operation of the business organisation. In other words,…

Q: Deferred revenues represent liabilities recorded when cash is received from customers in advance of…

A: Adjusting entries:Adjusting entries are the journal entries, which are recorded at the end of the…

Q: Unearned revenues O a. are recorded as assets when cash is received. O b. are referred to as future…

A: Revenue is the total income earned by a company by selling all its goods or services. It is recorded…

Q: Using accrual accounting, expenses are recorded and reported only a.when they are incurred, whether…

A: Under accounting, there are two types of systems that can be used. Cash basis of accounting says…

Q: An accounting concept’s applied when the cash drawn by from the business is recorded as “Owner’s…

A: The basic assumptions, rules, or conditions specifying the constraints for the working of accounting…

Q: Which of the following transactions results in the recognition of an exp O Withdrawal of cash by the…

A: Solution 1: An Expense is the cost of operations that a business incurs to generate revenue. In…

Q: Using accrual accounting, expenses are recorded and reported only a.if they are paid before they are…

A: The correct option is Option “d”. Using accrual accounting, expenses are recorded and reported only…

Q: A balance sheet lists: Group of answer choices The types and amounts of the revenues and…

A: The types and amounts of the revenues and expenses of a business Income statement The inflows…

Q: Under the accrual basis of accounting, cash receipts and disbursements may _____ the period in which…

A: Accrual system of accounting is one where expenses and incomes are recorded in P/L statement as and…

Q: The cash basis of accounting records revenues and expenses when the cash is exchanged, while the…

A: Accrual basis of accounting: Accrual basis of accounting refers to recognizing the expenses and…

Q: Which of the following statements about an "account" is true? It is the art of recording,…

A: Accounting is the process of recording the transactions in the books of accounts. Transactions are…

Q: If a company is using accrual basis accounting, when should it record revenue? A. when cash…

A: Cash basis accounting: In cash basis accounting, revenue is recognized when payment is received and…

Q: accruals

A: Under Accrual concept, revenue is recognized when it is earned and expense is recognized when it is…

Q: Identify the suitable accounting concept which would best apply to thefollowing scenarios: (i) An…

A: (i) An amount included in financial statements to represent the amount expected not to be…

Q: It is the amount collected by the business in advance from the customers before the business…

A: Under the accrual basis of accounting business transactions are recorded in books of accounts as and…

Q: A company records cash received from clients in advance for legal services in Unearned Revenue. If…

A: Adjusting entry means where some adjustment need to be made at the end of specified period for…

Q: . If a business has received cash in advance of services performed and credits a liability account,…

A: On receipt of advance the entity debit cash and credit liability Account (Unearned service revenue…

Q: c) Where do expenses belong in the accounting equation? How does an increase in an expense affect…

A: Please see Step 2 for required information.

Q: Which of the following accounts would need to be closed at the end of the period?a. Cashb. Supplies…

A: A closing entry is a journal entry made at the end of the accounting period. It involves shifting…

Q: When, at the end of an accounting period, cash has not been paid with respect to an expense that has…

A: Financial statements are prepared at the year end so that position and performance of the company…

Q: occur when a company receives cash before it can recognize revenue or when a comp. pays cash before…

A: Deferrals refers receipt or payment is done but to be recognised later. Estimates refers to a rough…

Q: Using accrual accounting, expenses are recorded and reported only a.if they are paid before they…

A: As per the cash basis of accounting, we should record the transaction only when corresponding cash…

Q: Which of the Tollowing is an asset exchange transaction? O a. Issued common stock. b. Accrued salary…

A: When just asset accounts are involved in a transaction, it is called an asset exchange transaction.

Q: An amount invested by the proprietor in the business should be debited to: O a. Capital Account O b.…

A: The owner needs to start a business by contributing cash or fixed assets to the business and make an…

Q: When, at the end of an accounting period, cash has not been paid with respect to an expense that has…

A: Financial statements are prepared at the year end so that position and performance of the company…

Q: . Multiple-Choice Question Under the accrual basis of accounting, revenues are reported in the…

A: Solution: Accrual basis of accounting refers to the revenue and expenses to be recognized in…

Q: Which of the following statements is characteristic of accrual basis accounting? Expenses are…

A: Cash basis accounting: In cash basis accounting , revenue are recognized when payment is received…

Question

When, at the end of an accounting period, cash has been paid with respect to an expense, the business should then record: C . an accrued expense, a liability

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.

Similar questions

What is the effect on the accounting equation when a business pays the balance due on accounts payable?
Identify which of the following accounts would be listed on the companys Post-Closing Trial Balance. A. Accounts Receivable B. Accumulated Depreciation C. Cash D. Office Expense E. Note Payable F. Rent Revenue G. Retained Earnings H. Unearned Rent Revenue
Revenues and expenses must be recorded in the accounting period in which they were earned or incurred, no matter when cash receipts or outlays occur under which of the following accounting methods? A. accrual basis accounting B. cash basis accounting C. tax basis accounting D. revenue basis accounting
State whether the balance in each of the following accounts increases with a debit or a credit. A. Office Supplies B. Retained Earnings C. Salaries Expense D. Accounts Receivable E. Service Revenue
What is the effect on the fundamental accounting equation if supplies are purchased on account? How will the fundamental accounting equation change if supplies are purchased with cash? Explain how this purchase will or will not change the owners equity.
If a journal entry includes a debit or credit to the Cash account, it is most likely which of the following? A. a closing entry B. an adjusting entry C. an ordinary transaction entry D. outside of the accounting cycle
Which of the following statements is true? Under cash-basis accounting, revenues are recorded when a company satisfies its performance obligations and expenses are recorded when incurred. Accrual-basis accounting records both cash and noncash transactions when they occur. Generally accepted accounting principles require companies to use cash-basis accounting. The key elements of accrual-basis accounting are the revenue recognition principle, the expense recognition principle, and the historical cost principle.
Which set of accounts has the same type of normal balance? A. Cash, accounts payable B. Prepaid rent, unearned service revenue C. Dividends, common stock D. Accounts payable, retained earnings
For the following accounts indicate whether the normal balance is a debit or a credit. A. Unearned Revenue B. Interest Expense C. Rent Expense D. Rent Revenue E. Accounts Payable F. Cash G. Supplies H. Accounts Payable I. Equipment J. Utilities Expense
For each of the following transactions, state which special journal (Sales Journal, Cash Receipts Journal, Cash Disbursements Journal, Purchases Journal, or General Journal) and which subsidiary ledger (Accounts Receivable, Accounts Payable, neither) would be used in recording the transaction. A. Sold inventory for cash B. Issued common stock for cash C. Received and paid utility bill D. Bought office equipment on account E. Accrued interest on a loan at the end of the accounting period F. Paid a loan payment G. Bought inventory on account H. Paid employees I. Sold inventory on account J. Paid monthly insurance bill
For the following accounts please indicate whether the normal balance is a debit or a credit. A. Sales B. Dividends C. Office Supplies D. Retained Earnings E. Accounts Receivable F. Prepaid Rent G. Prepaid Insurance H. Wages Payable I. Building J. Wages Expense
Consider the following accounts, and determine if the account is an asset (A), a liability (L), or equity (E). A. Accounts Payable B. Cash C. Dividends D. Notes Payable