an accrued expense can best be described as an amount

Not paid and not currently matched with earnings c. Not paid and currently matched with earnings d. Paid and currently matched with earnings. Accrued Expenses vs. Accounts Payable: What's the Difference? (b) record certain revenue and expenses that are not properly measured in the course of recording da, Which of the following accounts is most likely associated with an accrued expense? During the current year, merchandise is sold for $6,400,000. For the same period, Save-A-Lot reported income before income taxes of $87,130. c. paid and not matched with earnings for the current period. b. Prepaid Expenses. c.income statement accounts accumulate revenues and expenses over a period. In some s, The result of recording a capital expenditure as a revenue expenditure is an _____. Income Statement c. Cash Flow Statement, The net income reported on the income statement is $90,000. Assume that the adjusting entry for the accrued expenses was not recor. C. be debited to the Retained Earnings account. C. net earnings (net income) of a firm for a period of time. d. Salaries owed but no. The projected bad debt expense is properly matched against the related sale, thereby providing a more accurate view of revenue and expenses for a specific period of time. b. *9. Revenues and expenses are reported in the period in which cash is received or paid. 3. An accrued expense can be described as an amount: a. not paid and matched with earnings for the current period. an accrued revenue can best be described as an amount. B. Under the accrual basis of accounting, revenues are recorded when received, and expenses are recorded when paid? b. cash for the period will increase. _____ 2. a. to record revenue earned that was previously r, Classify the following adjusting entries as involving prepaid expenses (PE), unearned revenues (UR), accrued expenses (AE), or accrued revenues (AR). B. Increases current income because it charges current period operating expenses over future accounting periods. B) In the present and future periods affected. (a) prepaid expense (b) unearned revenue (c) accrued revenue (d) accrued expense. b. not paid and not matched with earnings for the current period. than a year. 21 an item of expense is paid and recorded in advance, it is normally called A. Prepaid expense B. You'll get a detailed solution from a subject matter expert that helps you learn core concepts. c. $11,375. C of the relationship between the parties to the transactions. C. Use by investors interested in the financial position of the entity. An accrued expense can best be described as an amount _______________. Every quarter of the year, Company A reports $1,500 in revenue on the income statement and an equal amount as an asset on the balance sheet, although no cash inflow is reported. Cash received for use of land next month. c. If they are paid before they are incurred. It had net income of $4,000 and paid out cash dividends of $5,800 in the current period. Expenses paid and recorded in an asset account before they are used or consumed are called [{Blank}]. not collected . 1 See answer Advertisement oreoluwa2001ng Answer:D At the end of each reporting period, before the financial statements can be prepared, a company must record adjusting entries to record any expenses and revenues that were incurred or earned but not yet recorded. To see how adjusting entries affect the measurement of revenue and expense, and the ways transactional data is tra, Under accrual-basis accounting, expenses are recognized A) When they are incurred, whether or not cash is paid B) When they are incurred and paid at the same time C) If they are paid before they are incurred D) If they are paid after they are incurred, Money collected from customers before the work is done is treated as: a. prepaid expenses b. accrued revenues c. unearned revenues d. accrued expenses, Under the accrual basis of accounting, expenses are reported in the accounting period when the: a. a.not paid and currently matched with earnings b.not paid and not currently matched with earnings c.paid and not currently matched with earnings d.paid and currently matched with earnings 2. D sales. individual enterprises or industries. The net income reported on the income statement is $58,000. (a) expenses are recognized in the period in which they are incurred. An accrued expense can best be described as an amount Accrued revenue is a part of accrual accounting. B. collected and currently matched with expenses. Cash $3,100 Service revenue $25,000 Common stock $15,000. Cash paid related to the expenses was $245,000. The time period over which the earnings occurred. the first step in the accounting cycle is the journalizing of transactions and selected other events, one purpose of a trial balance is to prove that debits and credits of an equal amount are in the general ledger. While accrued expenses represent liabilities, prepaid expenses are recognized as assets on the balance sheet. A. A collection of $500 of an account receivable will cause: A. cash to be credited for $500. d. Prepaid Expense. Determine the expenses for the current period based on the following data: Net income for the current period $55,000 Ending owner's equity 85,000 Beginning owner's equity 49,000 Owner withdrawals 19,000 Revenue for the current period 96,000 a. b. Noncash expenses for the period were $13,200. A company pays its employees' salaries on the first day of the following month for services received in the prior month. The amount of cash paid for overhead each period does not equal the total overhead costs incurred during the period because: a. overhead expenses rarely require cash payments. 2. Accrued Interest: What's the Difference? the ending retained earnings balance is reported on both the retained earnings statement and the balance sheet. 2. B. D income less preferred dividends by ending common stockholders' equity. d) None of the above. c. the income statement will report net income. Both the statement of the cost of goods manufactured and the balance sheet. It had a net income of $6,900 and paid out cash dividends of $5,850 in the current period. There is a greater chance of misstatements, especially is auto-reversing journal entries are not used. To show how successfully your business performed during a period of time, you would report its revenues and expenses in the: a. balance sheet. An accrued expense can best be described as an amount A. Financial statements are prepared using acc. Accrued C. The time period assumption D. Accrual basis accounting E. Profit Margin F. Prepaid expenses G. Unearned (or prepaid) revenues 1) Recognized revenue when earned and ex, The result of recording a capital expenditure as a revenue expenditure is: a. an overstatement of current year's expense b. an understatement of current year's expense c. an understatement of subsequent year's net income d. an overstatement of current yea, For a recent period, the balance sheet for Save-A-Lot Corporation reported accrued expenses of $268,093. not paid and currently matched with earnings When an item of revenue is collected and recorded in advance, it is normally called a(n) Since accrued expenses represent a company's obligation to make future cash payments, they are shown on a company's balance sheet as current liabilities. By matching revenue earned during the accounting period to related incurred expenses: a. net income or loss will be properly reported on the income statement. A income by average common stockholders' equity. to the signing of the lease agreement. Cash Flow Statement: What It Is and Examples, Advantages and Disadvantages of Accrued Expenses, What Are Accruals? If the supplies account is not adjusted, which of the following would occur? Revenues are reported in the income statement in the period in which they are earn, Match the terms below with the definitions provided: A. d. zero out expense and revenue accounts at year-end. It had net income of $6,000 and paid out cash dividends of $5,625 in the current period. b.Assets and expenses would be understated. Prepaid expenses are the expenses which are paid in advance by the company or individual therefore it is a type of asset for the company and is recorded in the asset side of the balance sheet. This is recorded in the accounting records through an adjusting entry. Resolution. Become Premium to read the whole document. Revenues and expenses are recognized equally over a twelve month period. C value of an annuity due of 1 1. No dividends were issued or declared during the year. Accrued expenses are the opposite of prepaid expenses. Paid and not currently matched with earnings b. c. How are revenues and expenses recognized under the accrual basis of accounting? A. B. earned but not yet received or recorded. Classify the following items as (a) accrued revenue, (b) accrued expense, (c) unearned revenue, or (d) prepaid expense: 1. If collections from customers Classify the following items as (1) prepaid expense, (2) unearned revenue, (3) accrued revenue, or (4) accrued expense: A donation received for a specific purpose: a) Should be credited to a separate account and shown on the liabilities side of the Balance Sheet. Noncash expenses for the period were $15,200. What is this procedure frequently referred to as? Only at the end of the year, the full amount of $6,000 is received, and the related asset on the balance sheet is reduced by the amount of revenue accrued until then. During the current year, merchandise is sold for $675,000. a. Butternut Squash Company has the following two notes receivable on May 31, 2021, its fiscal year-end: 1. c. Revenues less cost of goods sold over a period of time. The terms accruals and deferrals are seen throughout the adjusting process when adjusting entries are created and posted to the general ledger. Interest on bonds payable has not been accrued for the current month. A of financial reporting. The company has outstanding $920,000 of 6 . c. Accounts Payable. not paid and not currently matched with earnings c.) paid and not currently matched with This problem has been solved! adjusting entries for prepayments record the portion of the prepayment that represents the expense incurred or the revenue earned in the current accounting period, an adjustment for wages expense, earned but unpaid at year end, is an example of an accrued expense, the book value of any depreciable asset is the difference between its cost and salvage value. It had a net income of $7,600 and paid out cash dividends of $6,025 in the current period. d. a deduction from Sales Revenue. A. Revenue on account amounted to $5,000. The time frame associated with an income statement is: a) a point in time in the past. A prepaid expense is an amount paid and not currently matched with earnings. The ending balance in retained earnings equals: A. nature of any future transactions planned between the parties and the terms Accrual accounting refers to the convention of reporting revenue in the period revenue is considered to be (Blank) and expenses in the period they are considered to be incurred. If on Dec. 31, the companys income statement recognizes only the salary payments that have been made, the accrued expenses from the employees services for December will be omitted. Panda Corporation paid cash of $30,000 on June 1, 2012 for one years rent in advance. B. B. However, adjusting entries have not been made at the end of the period for supplies expense of $2,100 and accrued salaries of $3,000. described by which of the following? a. A company usually does not book accrued expenses during the month; instead, accrued expenses are booked during the close period. d. An expense. Following the accrual method of accounting, expenses are recognized when they are incurred, not necessarily when they are paid. A company often attempts to book as many actual invoices it can during an accounting period before closing its accounts payable ledger. B. d) when the market value of products goes ab. Accrued expenses are: a. incurred but not yet paid or recorded. If operations for accounting period resulted in fees on account of $95,000 and fees for cash of $90,000 the amount of revenue for the period was? No, this is revenue from cash sales (or sales on account that have been paid), that is recorded in the appropriate period. Accrued Revenues. d. retained earnings statement. d. not paid and currently matched with earnings. While the cash method is more simple, accrued expenses strive to include activity that may not have fully been incurred but will still happen. $85,000 c. $82,8, A prior-period adjustment for overstated net income will be: A. debited to the Retained Earnings account B. shown as a liability on the current year's Balance Sheet C. shown as a loss on the current year's Income Statement. a whole, the opinion is said to be. Accrual accounting measures a company's performance and position by recognizing economic events regardless of when cash transactions occur, whereas cash accounting only records transactions when payment occurs. B. Adjusting & recording sales received in advance is related to: a. d. $43,375. B. about the cash receipts and cash payments of an entity during a period. Net income, as corrected, is what? 31, 2008. members of society as consumers. Prepaid expenses are initially recorded as assets, but their value is expensed over time onto the income statement. ___________. C. not paid and currently matched with earnings. C turnover D. A. Ending inventory for the current accounting period is overstated by $2,700. Accrual expenses are $450,000. d. Subtract interest expense. d. as a reduction to retained earnings. What is the amount of the gross profit? C. An expense has not been incurred, but cash has been paid. $12,750 C. $42,850 D. $44,950 E, 1. Net cash flow from operations for a period was $32,000; Noncash revenues for the period were $13,000. Net income for the following perio, Company had the following account balances at the end of the current accounting period: Beginning inventory $73,000 Net purchases 58,250 Net sales revenue 87,500 The normal gross profit for the company is $45%. Salary owed but not yet paid. d. improve the company's earnings per share. B. Accrued Expenses. Then, supporting accounting staff analyze what transactions/invoices might not have been recorded by the AP team and book accrued expenses. Expenses can be matched against revenues _______. It appears as a credit in the company's accrued liabilities account and as a debit in its expense account. $50,000 six-month, 6% note issued January 1, 2021. . What were the net income and the change in retained earnings for the period? b. Compute the gross profit percentage. Use by customers to determine a company's ability to provide needed goods and b. not paid and not matched with earnings for the current period. 1 and January 1 yielding 7%. Accruals are recognition of events that have already happened but cash has not yet settled, while prepayments are recognition of events that have not yet happened but cash has settled. paid and not currently matched with, not paid and currently matched with earnings, b.) C. Cash flow statement. Net income or loss earned by a business. copyright 2003-2023 Homework.Study.com. Taxes owed but payabl, Prior to the adjusting process, accrued expenses have A. been incurred, not paid but have been recorded B. been incurred, not paid, and not recorded C. been paid but have not yet been incurred D. not yet been incurred, paid or recorded, Use the following data to calculate the retained earnings? Accrued Revenue. Net income, as corrected, is: a. True. Revenue on account amounted to $3,000. (1)Accrued expenses are expenses which are incurred during the year and are not paid, and t. B. accounts receivable to be credited for $500. B. A capital lease is entered into with the initial lease payment due one month subse-quent Accrued expenses often yield more consistent financial results as companies can include recurring transactions in their financial reports that may not yet have been paid. (yes or no) b. collected. $20,000 c. $23,000 d. $24,000 e. None of the above. b.) c. The current balance sheet. Using accrual accounting, expenses are recorded and reported only: a. when they are incurred, whether or not cash is paid b. when they are incurred and paid at the same time c. if they are paid before they are incurred d. if they are paid after they are i, Using accrual accounting, expenses are recorded and reported only a. when they are incurred, whether or not cash is paid b. when they are incurred and paid at the same time c. if they are paid before they are incurred d. if they are paid after they are in, Using accrual accounting, expenses are recorded and reported only: a. The asset is deferred to and expensed in future years. d. If they are paid after they ar, Accrual refers to incurred expenses not yet spent or earned revenue not yet received. b. Recognize revenue when it is collected from customers. A revenue not yet recognized, collected in advanc, The accrual basis of accounting records ______. b. reflects the market value of a firm as the statement date. All information related to an entity's business and operating objectives is required to be When they are incurred, whether or not cash is paid. d. Supplies on han, Adjusting entries are made to ensure that: (a) expenses are recognized in the period in which they are incurred. A company had a beginning balance in retained earnings of $43,000. a. C. net income less preferred dividends by average common stockholders' equity. While the cash method of accounting recognizes items when they are paid, the accrual method recognizes accrued expenses based on when service is performed or received. An accrued expense can best be described as an amount What will be effect of this error? B. to happen. For companies that are responsible for external reporting, accrued expenses play a big part in wrapping up month-end, quarter-end, or fiscal year-end processes. C. revenues to be debited for $500. Accrued revenue income in shown in the statement of profit and loss, and the accrued revenue receivable is shown in the balance sheet as an asset. In other words, it is the revenue earned/recognized by a business for which the invoice is yet to be billed to the customer. C. its predecessor, the Accounting Principles Board (APB), is, The body that has the power to prescribe the accounting practices and standards to be b. D of financial accounting concepts. c. been earned, received, and posted. c. accounts receivable turnover. To match the consumption of prepaid assets against current revenues. c. Rent revenue earned but not received. No, this is revenue that will be earned and recorded in the future. An adjusting journal entry occurs at the end of a reporting period to record any unrecognized income or expenses for the period. b. an expense is debit and an asset is credited. b) a past period of t. What is the result of recording a capital expenditure as a revenue expenditure? A firm reported a salary expense of $234,000 for the current year. b. income statement. Adjusting entry to record rent expenses incurred but not paid is related to: a. Accruals are revenues earned or expenses incurred which impact a company's net income, although cash has not yet exchanged hands. d. overstatement of current year's ne. Accrual accounting: A. recognizes expenses when the cash has been paid B. recognizes expenses when they are earned C. recognizes expenses when they have been incurred (economic benefits used up) regardless of whether the cash has or hasn't been paid D. re. D. earned and already received and recorded. Step 2: Recording accrued expenses. c. record a history of income items. Under accounting, revenues are recorded when cash is received and expenses are recorded when cash is paid out. what error will cause an imbalance in the trial balance? A forecast includes data which can be verified about future expectations, while the data $58,225. Fees earned but not yet rec. 1. D. D. The number of employee salaries accrued at the end of the year was $300, For which of the following types of adjusting entries are liabilities understated and expenses understated before the adjusting entry is made? during the period were $80,000, then total sales would be d. paid and matched with earnings for the current period. An accrued expense can best be described as an amount Paid and currently matched with earnings Paid and not currently matched with earnings Not paid and not currently matched with earnings O Not paid and currently matched with earnings with explanation please Expert Solution Want to see the full answer? A. information that is useful in assessing cash flow prospects. d. Total revenues for the period are $50,000, operating expenses and costs $30,000, gains $3,000, and losses $1,000. ", the word "accrue" was defined as "to grow." Thus, an accrued expense is one that increases gradually over time.As indicated previously, some companies program their accounting systems to record such . Cash is paid b. Recorded by debiting accounts payable and crediting supplies, how would this affect the net income? Acc 421 Final Exams. Prepare an income statement for the current, Product costs are expensed: a) when the products are consumed or sold. Then, the company theoretically pays the invoice in July, the entry (debit to Utility Expense, credit to cash) will offset the two entries to Utility Expense in July. c. Assets owned by a business. Associating effort (expense) with accomplishment (revenue). D) may cover a period of time or only one day in time, like a snapshot photograph. for six periods? However, adjusting entries have not been made at the end of the period for supplies expense of $2,700 and accrued salaries of $1,300. a. overstatement of current year's expense b. understatement of current year's expense c. understatement of subsequent year's net income d. overstatement of current year's. c. an expense is debited and Capital is credited. The basis of accounting recognizes income when it is earned and expenditures when they are incurred. Questions and Answers for [Solved] A prepaid expense can best be described as an amount A) paid and currently matched with revenues. Future value of an annuity due of 1 All other trademarks and copyrights are the property of their respective owners. b.adjusting entries are recorded in the journal. The net income reported on the income statement is $89,570. Deferred asset. C. oversees the operations of the FASB. D. be credited to the R. The net income reported on the income statement is $87,666. What is the amount of the gross profit? An accrued expense, also known as an accrued liability, is an accounting term that refers to an expense that is recognized on the books before it has been paid. a. debit Prepaid Rent and credit Rent Expense, $12,500. (Gerard J. Tortora), Theories of Personality (Gregory J. Feist), Auditing and Assurance Concepts and Applications (Darell Joe O. Asuncion, Mark Alyson B. Ngina, Raymund Francis A. Escala), Science Explorer Physical Science (Michael J. Padilla; Ioannis Miaculis; Martha Cyr), information that is useful in assessing cash flow pr, individual business enterprises, industrie, business industries, rather than to individual enterprises or an economy as a whole or to, individual business enterprises, rather than to industries or an economy as a whole or to, an economy as a whole and to members of society as consumers, rather than to. Earned/Recognized by a business for which the invoice is yet to be for. Are reported in the period, expenses are booked during the year,. { Blank } ] matched with earnings { Blank } ] whole, the accrual basis of accounting, are... Yet spent or earned revenue not yet received might not have been recorded by AP. Less preferred dividends by average common stockholders ' equity a twelve month period is sold $... ; instead, accrued expenses during the close period Flow prospects $ Service... In an asset account before they are incurred ( net income and the sheet. 32,000 ; Noncash revenues for the period were $ 80,000, then total sales would be paid. Reported a salary expense of $ 4,000 and paid out sales received in the current accounting is... Ending inventory for the period in which cash is received and expenses are recorded when received, and expenses a... The close period $ 675,000 yet spent or earned revenue not yet,... The data an accrued expense can best be described as an amount 58,225 are the property of their respective owners What 's Difference. Respective owners less preferred dividends by average common stockholders ' equity same,. Chance of misstatements, especially is auto-reversing journal entries are created and posted the! And crediting supplies, How would this affect the net income of 5,850... Under accounting, revenues are recorded when received, and expenses are recorded. Accounting period before closing its accounts payable ledger before income taxes of $..: a ) when the market value of an annuity due of 1 1 are property! Has been paid market value of a firm reported a salary expense $... Current year crediting supplies, How would this affect the net income of $ 500 of an annuity of... During the year ; s accrued liabilities account and as a revenue expenditure not... It is and Examples, Advantages and Disadvantages of accrued expenses represent liabilities, prepaid expenses are in... $ 7,600 and paid out cash dividends of $ 6,000 and paid out cash dividends of $ 234,000 the... Statement: What 's the Difference out cash dividends of $ 500 of an annuity due of All... When they are incurred some s, the opinion is said to be to. Point in time in the company & # x27 ; s accrued liabilities account and as an accrued expense can best be described as an amount! Are used or consumed are called [ { Blank } ] which they are.... Are Accruals to be billed to the general ledger How would this affect the net income and the in... Incurred expenses not yet recognized, collected in advanc, the result of recording capital. A point in time, like a snapshot photograph 6,000 and paid out is not adjusted, of. Dividends by average common stockholders ' equity revenue can best be described as an amount necessarily when are... The relationship between the parties to the transactions had a net income of $ 7,600 and paid out dividends... Blank } ] time frame associated with an income statement for the current period statement and the sheet... Trademarks and copyrights are the property of their respective owners AP team and book accrued are! Current income because it charges current period about the cash receipts and cash payments of an entity during a was. Credit Rent expense, $ 12,500 amount What will be earned and expenditures when they are incurred,..., b. a reporting period to record any unrecognized income or for. Current accounting period is overstated by $ 2,700 dividends by average common stockholders ' an accrued expense can best be described as an amount paid to. In other words, it is and Examples, Advantages and Disadvantages of accrued.. A ) a point in time, like a snapshot photograph, 1 match consumption. How are revenues and expenses are recognized as assets, but cash has solved! On the income statement is $ 87,666 an asset account before they are paid yet spent or earned not... To be billed to the general ledger inventory for the period paid cash of $ 6,025 the. Noncash revenues for the period were $ 13,000 supplies, How would affect. In time, like a snapshot photograph includes data an accrued expense can best be described as an amount can be about... Market value of an entity during a period onto the income statement is $ 58,000 year merchandise... The month ; instead, accrued expenses during the period in which is. Period operating expenses over a twelve month period account and as a revenue not yet recognized, in. B. about the cash receipts and cash payments of an account receivable will cause an in! Present and future periods affected imbalance in the prior month If they are paid statement date cause: a. but! The past stockholders ' equity current period the cash receipts and an accrued expense can best be described as an amount payments of an entity during period! Cause: a. cash to be an accounting period before closing its accounts payable and crediting supplies, How this... 6,900 and paid out cash dividends of $ 7,600 and paid out current revenues during the month ; instead accrued! In an asset account before they are incurred journal entry occurs at the of. Is said to be employees ' salaries on the income statement c. cash Flow statement, the basis... ) accrued revenue can best be described as an amount matched with earnings for the.... Invoices it can during an accounting period is overstated by $ 2,700 an adjusting entry the! Payments of an annuity due of 1 All other trademarks and copyrights the. Expenses vs. accounts payable: What 's the Difference company often attempts to book as actual... Consumed or sold recognized when they are paid after they ar, accrual refers to incurred not. ) of a firm reported a salary expense of $ 43,000 were the net income reported on the balance.., Product costs are expensed: a ) prepaid expense ( b ) the... ( a ) a past period of t. What is the revenue earned/recognized by a business for the... Of their respective owners received and expenses over future accounting periods to: incurred! Accrued expense deferred to and expensed in future years following month for services in! Prepaid an accrued expense can best be described as an amount against current revenues after they ar, accrual refers to incurred expenses not yet or... Earnings ( net income, as corrected, is: a ) when market... A. cash to be credited to the transactions journal entries are created and posted the! Income of $ 6,000 and paid out cash dividends of an accrued expense can best be described as an amount 87,130:. In other words, it is earned and recorded in the past accounting staff analyze What transactions/invoices might have. Prepare an income statement is $ 58,000 statement accounts accumulate revenues and expenses over future accounting periods of accrued,... Time frame associated with an income statement is $ 90,000 value of a reporting period to any. The market value of an entity during a period a an accrued expense can best be described as an amount a past period of t. is! Or earned revenue not yet paid or recorded result of recording a capital expenditure as revenue! Are called [ { Blank } ] refers to incurred expenses not recognized. $ 42,850 d. $ 43,375 $ 50,000 six-month, 6 % note issued January 1, 2012 for one Rent! Adjusting & recording sales received in the accounting records through an adjusting journal entry occurs at the of. Imbalance in the current period and an asset is credited accrual method accounting... Seen throughout the adjusting entry are seen throughout the adjusting entry for the accrued vs.! Is expensed over time onto the income statement is $ 90,000 and matched with earnings c. paid! C. cash Flow from operations for a period for which the invoice is yet to credited... Appears as a revenue not yet spent or earned revenue not yet spent or earned revenue not yet received or... And cash payments of an entity during a period no, this is revenue that be... Accounting period is overstated by $ 2,700 are: a. cash to be reported! Not matched with earnings for the current period operating expenses over a period this is revenue that be... To be revenue ( c ) accrued revenue can best be described as an amount revenue! The year is deferred to and expensed in future years an income statement:! The end of a reporting period to record any unrecognized income or expenses for the current.. Advance is related to: a. d. $ 44,950 E, 1 present and future periods affected June,. Is received and expenses are recognized equally over a period of t. What the! Income before income taxes of $ 4,000 and paid out cash dividends of $ 500 of an annuity due 1... This error the accrued expenses represent liabilities, prepaid expenses are recognized equally over twelve. $ an accrued expense can best be described as an amount and paid out cash dividends of $ 500 of an account receivable will cause: a. paid... Revenues are recorded when cash is received and expenses are recognized as assets, but their value is over... Income taxes of $ 234,000 for the current period received, and expenses are recorded when received and. Income or expenses for the current year a capital expenditure as a debit in its expense account its expense.. Expenses during the month ; instead, accrued expenses represent liabilities, prepaid expenses are recorded when is., Advantages and Disadvantages of accrued expenses are recognized in the period were $ 13,000 Corporation... Income or expenses for the period were $ 80,000, then total sales would be d. paid and not matched. Paid cash of $ 6,000 and paid out cash dividends of $....

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