Question Details

Which of the following events does not result in the recording of an expense



1.	A transaction in which six months' rent is paid in advance. Which of the following journal entries records the transaction?
a.	Prepaid Rent - Debit; Cash - Credit
b.	Rent Receivable - Debit; Cash - Credit
c.	Rent Revenue - Debit; Cash - Credit
d.	Rent Expense- Debit; Cash - Credit



	2.	Which of the following events does not require a journal entry?
a.	Purchase of a one-year insurance policy
b.	Agreement to perform a service at a future date
c.	Performance of a service agreed to at a past date
d.	Payment for a service performed previously



	3.	Which of the following events does not result in the recording of an expense?
a.	Withdrawal of cash by the owner
b.	Purchase of gasoline for fill-up of a company car
c.	Receipt of a bill from the telephone company
d.	Payment of wages



	4.	A company that receives money in advance of performing a service. What is the journal entry for the transaction?
a.	Unearned Revenue - Debit; Accounts Payable - Credit
b.	Cash - Debit; Unearned Revenue - Credit
c.	Cash - Debit; Prepaid Fees - Credit
d.	Cash - Debit; Accounts Receivable. - Credit



	5.	When a company has performed a service but has not yet received payment, what is the required journal entry to be recorded?
a.	Accounts Receivable - Debit; Revenue from Services - Credit
b.	Revenue from Services - Debit;  Accounts Payable - Credit
c.	No entry is required until the cash is received.
d.	Revenue from Services - Debit; Accounts Receivable - Credit




	6.	Which of the following gives the correct sequence of accounting procedures?
a.	Financial statements, trial balance, ledger, journal
b.	Financial statements, journal, ledger, trial balance
c.	Journal, ledger, trial balance, financial statements
d.	Ledger, trial balance, journal, financial statements



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