Question

Accounting 1 Help!
1. An accountant records a transaction when cash is paid or received under which basis of accounting?
cash
deferred
accrual
liability
2. When unearned revenue is initially recorded as a revenue, the adjusting entry would include a
credit to a liability.
debit to a liability.
debit to an asset.
credit to revenue.
3. A principle used to record revenue when it is earned is the
matching principle
revenue principle
timing principle
current principle
4. The balance in prepaid rent after adjustment represents
a liability on the balance sheet.
an expense on the income statement
revenue on the income statement
an asset on the balance sheet.

Answer 1

1. Cash
2. Debit to a liability
3. Revenue principle
4. An asset on the balance sheet