Accounting 21

false; first

reversing entries are made on the last day of the fiscal period

false; interest receivable

when an adjusting entry for accrued interest income is made, interest income is debited

Interest Expense Credit

A reversing entry for accrued interest expense will result in an account balance balance of..

Interest Income

A reversing entry for accrued interest income results in a debt to...

Interest income debit

A reversing entry for accrued interest income will result in an account balance of..

an asset or liability account

An adjusting entry normally is reversed if the adjusting entry creates a balance in..

a reversing entry

An entry made at the beginning of one fiscal period to revenue an adjusting entry made in the previous fiscal period is called..

Revenue Account

At the end of a fiscal period, any revenue that has been earned but not received should be credited to an appropriate..

liability account

At the end of a fiscal period, each expense that has been incurred but not paid should be credited to an appropriate..

an adjusting entry

At the end of a fiscal period, each expense that has been incurred but not paid should be recorded as..

expenses account

At the end of a fiscal period, each expenses that has been incurred but not paid should be debited to an appropriate..

Accrued expenses

Expenses incurred in one fiscal period but not paid until a later fiscal period are called..

an asset

Interest Receivable is...

Accrued interest income

Interested earned but not yet received is called...

Accrued interest expense

Interested incurred but not yet paid is called..

Realization of Revenue

Recording adjusting entries for the fiscal period in which the revenue has been earned regardless of when it will be received is an application of the accounting concept...

accursed revenue

Revenue earned in one fiscal period but not received until a later fiscal period is called...

true

Revenue should be recorded when the revenue is earned

false; reduces

a reversing entry for interest income increases the balance of Interest Receivable

false; credited

accrued interest income is debited to the interest income account

true

accrued interest is calculated by multiplying principal times interest rate times time as a fraction of a year

false; end

adjusting entries are made at the beginning of each fiscal period.

false; credit

an Interest Payable debit balance is accrued interest expense incurred in the current year but to be paid in the next year

true

at the end of a fiscal period, the Interest Expense balance after adjustments shows the amount of interest expense that has been incurred in that fiscal period

true

the adjustment for accrued interest income is planned on a work sheet.

true

when a reversing entry is made for accrued interest expense, a debit entry is required to Interest Payable