Accounting Chapter 21 - True/False
recording an adjusting entry for an accrued expense is an application of the realization of revenue concept
false
the adjusting entry for deferred rent revenue earned increases the unearned rent income account
false
the reversing entry for accrued interest earned includes a credit to the interest income account
false
when a reversing entry is made for accrued interest expense, a credit to interest payable is required
false
accrued interest income is credited to the interest income account
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
if cash is paid for a deferred expense, an asset is increased
true
if cash is received for revenue that has not been earned, a liability is increased
true
revenue and expenses should be recorded when the revenue is earned and expenses are incurred
true
reversing entries are not required in accounting
true
the adjusting entry for deferred rent expense increases the rent expense account
true
the adjusting entry for deferred rent expense incurred includes a credit to prepaid rent
true
the adjusting entry for deferred rent revenue earned includes a credit to rent income
true