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




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