Question : 71. Prepaid expenses eventually expected to A. become expenses when their future economic : 1234024

71. Prepaid expenses are eventually expected to 
A. become expenses when their future economic value expires.
B. become revenues when services are performed.
C. become expenses in the period when they are paid.
D. become revenues when the liability is no longer owed.

72. Which of the following is considered to be unearned revenue? 
A. Concert tickets sold for tonight’s performance.
B. Concert tickets sold yesterday on credit.
C. Concert tickets that were not sold for the current performance.
D. Concert tickets sold for next month’s performance.

73. Which of the following is an example of accrued revenue? 
A. Swimming pool cleaning that has been for three months in advance.
B. Swimming pool cleaning that has been provided but has not been billed or paid.
C. An agreement has been signed for swimming pool cleaning for the next three months.
D. Swimming pool cleaning that has been provided and paid on the same day.

74. Which of the following is considered to be an accrued expense? 
A. A computer technician has installed the latest software updates and was paid on the same day.
B. A computer technician has been paid in advance to install software updates as they become available.
C. A computer technician has just signed an agreement with you regarding pricing for future work.
D. A computer technician has installed the latest software updates, but you have not received their invoice for payment.

75. Which account would normally not require an adjusting entry? 
A. Wages Expense
B. Accounts Receivable
C. Accumulated Depreciation
D. Capital Stock

76. Which one of the accounts below would likely be included in an accrual adjusting entry? 
A. Insurance Expense
B. Prepaid Rent
C. Interest Expense
D. Unearned Rent

77. Which one of the following accounts below would likely be included in a deferral adjusting entry? 
A. Interest Revenue
B. Unearned Revenue
C. Salaries Payable
D. Accounts Receivable

78. The balance in the prepaid rent account before adjustment at the end of the year is $15,000, which represents three months’ rent paid on December 1. The adjusting entry required on December 31 is 
A. debit Rent Expense, $5,000; credit Prepaid Rent, $5,000
B. debit Prepaid Rent, $10,000; credit Rent Expense, $5,000
C. debit Rent Expense, $10,000; credit Prepaid Rent, $5,000
D. debit Prepaid Rent, $5,000; credit Rent Expense, $5,000

79. The balance in the office supplies account on June 1 was $5,200, supplies purchased during June were $2,500, and the supplies on hand at June 30 were $2,000. The amount to be used for the appropriate adjusting entry is 
A. $4,500
B. $2,500
C. $9,700
D. $5,700

80. What is the proper adjusting entry at June 30, the end of the fiscal year, based on a prepaid insurance account balance before adjustment, $15,500, and unexpired amounts per analysis of policies, $4,500? 
A. debit Insurance Expense, $4,500; credit Prepaid Insurance, $4,500
B. debit Insurance Expense, $15,500; credit Prepaid Insurance, $15,500
C. debit Prepaid Insurance, $11,500; credit Insurance Expense, $11,500
D. debit Insurance Expense, $11,000; credit Prepaid Insurance, $11,000