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
Business entity principle
Matching principle
Full disclosure principle
Question 25. Question :
Prepaid expenses are:
Payments made for products and services that do not
ever expire