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