GB 518 RANK Career Path Begins/gb518rank.com GB 518 RANK Career Path Begins/gb518rank.com | Page 44

Recorded as a debit to a prepaid expense
account
Recorded as a credit to an unearned
revenue account
Recorded as a credit to a prepaid expense
account
Not recorded in the accounting records
until the earnings process is complete

Question 23. Question :
Increases in retained earnings
from a company's earnings activities are:
Assets
Revenues
Liabilities
Stockholder's Equity
Expenses
Question 24. Question :
Which of the following
accounting principles dictates when expenses are recognized?
Revenue recognition principle
Monetary unit principle