Recognizes expenses when paid in
cash
Eliminates the need for adjusting
entries at the end of each period
Question 11. Question :
On April 1, 2011, a company
paid the $1,350 premium on a three-year insurance policy
with benefits beginning on that date. What will be the
insurance expense on the annual income statement for the
year ended December 31, 2011?
Question 12. Question :
entries is to:
The main purpose of adjusting
Record external transactions and
events
Record internal transactions and events
Recognize assets purchased during the
period
Recognize debts paid during the period
Correct errors
Question 13. Question :
Unearned revenue is reported
on the financial statements as:
A revenue on the balance sheet