prepaid expenses are eventually expected to become quizlet

debit Prepaid Rent, $8,000; credit Rent Expense, $8,000 Accumulated depreciation accounts are liability accounts. C. become expenses in the period when they are paid. Question: Prepaid Expenses Are Eventually Expected To Become Orevenues When The Liability Is No Longer Owed Revenues When Services Are Performed Expenses When Their Future Economic Value Expires Expenses In The Period When They Are Paid Term. Prepaid expenses are eventually expected to become revenues when services are performed expenses when their future economic value expires or is used up revenues when the liability is no longer owed expenses in the period when they are paid Prepaid expenses are eventually expected to A. become expenses when their future economic value expires. The type of account and normal balance of unearned rent is: Liability. become expenses when their future economic value expires. Journal Entry for Prepaid Expenses. Prepaid expenses are eventually expected to become. Prepaid expenses and prepaid revenues are prepayments by businesses and customers. 8.Accrued expenses are ordinarily reported on the balance sheet as . Each month, an adjusting entry will be made to expense $10,000 (1/12 of the prepaid amount) to the income statement through a credit to prepaid insurance and a debit to insurance expense. C. become expenses in the period when they are paid. anie: ID: B 46. This is why an accrual is recorded as a liability at the end of a period. Generally, the amount of prepaid expenses that will be used up within one year are reported on a … Which of the following accounts would likely be included in an accrual adjusting entry? 9.Prepaid expenses are eventually expected to. a.become revenues when the liability is no longer owed. 3. revenues when the liability is no longer owed c. expenses when their future economic value expires or is used up Od. Prepaid expenses are eventually expected to become a. expenses when their future economic value expires b. revenues when services are performed c. expenses in the period when they are paid d. revenues when the liability is no longer owed 31. b. become revenues when services are performed. Definition: Deferred expense, also called a prepaid expense, is a cost that has been incurred but is recorded as an asset until the related goods or services are consumed.In other words, money has been spent on goods or services in the current period, but the goods and services have not been consumed in … 11. Below is the journal entry for prepaid expenses; According to the three types of accounts in accounting “prepaid expense” is a personal account. c.become expenses in the period when they are paid. B. become revenues when services are performed. Prepaid expenses are eventually expected to become a.revenues when the liability is no longer owed b.expenses when their future economic value expires or is used up c.expenses in the period when they are paid d.revenues when services are performed become revenues when services are performed. d. become expenses when their future economic value expires Prepaid expenses are listed on the balance sheet as a current asset until the benefit of the purchase is realized. Chegg.com Prepaid expenses are eventually expected to become a. expenses in the period when they are paid Ob. b.become revenues when services are performed. In other words, prepaid expenses are costs that have been paid but are not yet used up or have not yet expired. B. become revenues when services are performed. Which of ihe following is … QUESTION 25 Prepaid expenses are eventually expected to become a. expenses when their future economic value expires or is used up b.expenses in the period when they are paid C. revenues when services are performed d. revenues when the liability is no longer owed 1 Answer to Prepaid expenses are eventually expected to become expenses when their future economic value expires revenues when services are performed expenses in the period when they are paid revenues when the liability is no longer owed - 2433386 Which of the 70. Prepaid expenses are future expenses that have been paid in advance. Prepaid expenses are eventually expected to become expenses in the period when they are paid expenses when their future economic value expires revenues when the liability is no longer owed revenues when services are performed Feedback Correct Which of the following is considered to be unearned revenue? A prepaid expense is an expenditure paid for in one accounting period, but for which the underlying asset will not be consumed until a future period. 70. Definition: Accrued expenses are costs that are incurred in the current period but not paid for until the next period.In other words, it’s an expense that the company has benefited from but hasn’t paid for or recorded yet. 1. Which of the following is considered to be unearned revenue? D. become revenues when the liability is no longer owed. B. become revenues when services are performed. Each month, the firm would deduct $2,000 from its prepaid expenses on the balance sheet, transferring the amount to a monthly rent expense line on the income statement.By the end of the year, the full $24,000 would show as various expenses on the income statement, and there would be $0 left in the prepaid expense asset account shown in the current asset section of the balance sheet. Prepaid expenses are eventually expected to become: a. revenues when the liability is no longer owed b. revenues when services are performed c. expenses when their future economic value expires Prepaid expenses are those expenses which are paid in advance for a benefit yet to be received. 71. True False Prepaid expenses are eventually expected to become expenses when their future economic value expires revenues when the liability is no longer owed expenses in the period when they are paid revenues when services are performed The net income reported on the income statement is $58,000. Interest Expense. Prepaid expenses are eventually expected to A. become expenses when their future economic value expires. Prepaid expenses are eventually expected to become a.expenses when their future economic value expires or is used up b.revenues when the liability is no longer owed c.expenses in the period when they are paid d.revenues when services are performed b.liabilities. d.fixed assets. Which of the following accounts would likely be included in a deferral adjusting entry? The perks of such expenses are yet to be utilised in a future period. When the asset is eventually consumed, it is charged to expense.If consumed over multiple periods, there may be a series of corresponding charges to expense. The last step of the accounting cycle is to prepare a post-closing trial balance a.True b.False 3.Prepaid expenses are eventually expected to a.become revenues when the liability is no longer owed b.become expenses in the period when they … prepaid expenses or deferred expenses, unearned revenues or deferred revenues: prepaid expenses (deferred expenses) items that initially have been recorded as assets but are expected to become expenses over time through the normal operation of the … Definition of Prepaid Expenses. A. expenses when their future economic value expires or is used up B. revenues when services are performed C. expenses in the period when they are … These aren't actual expenses and revenues, but assets and liabilities recorded on the balance sheet at the time of the prepayments. Obecome expenses in the period when they are paid. Assets resulting from the prepayment of future expenses such as insurance or rent that are expected to become expenses over time or through the normal operations of the business; often called deferred expenses. d. become revenues when services are performed. Unearned Revenue. Prepaid expenses are eventually expected to become a.expenses in the period when they are paid b.revenues when services are performed c.revenues when the liability is no longer owed a.expenses in the period when they are paid b.revenues when services are … Expenses when used up. Prepaid expenses are eventually expected to A. become expenses when their future economic value expires. B. become revenues when services are performed. Prepaid expenses are eventually expected to become expenses when their future economic value expires. Which of the following items does not appear on the work sheet a.The unadjusted trial balance b.Dividends c.Adjusting Entires d.Closing Entries 2. Prepaid expenses are eventually expected to a. become expenses when their future economic value expires. theater tickets that were not sold for the current performance theater tickets sold … Stockholders’ equity: Definition. Current asset until the benefit of the following accounts would likely be included in an accrual is as... But are not yet used up Od c. expenses when their future economic value expires:.!, prepaid expenses are eventually expected to A. become expenses when their economic! In a deferral adjusting entry accounts in accounting “prepaid expense” is a personal.... Asked Feb 25, 2019 in Business by kaqtus12 and normal balance unearned! Yet expired recorded on the balance sheet as a: Current liability 1! C.Become expenses in the period when they are paid is used up Od a future period b. expenses! Expires or is used up Od they are paid in advance for a benefit to. In accounting “prepaid expense” is a personal account perks of such expenses are listed the. Such expenses are those expenses which are paid paid in advance but are not yet used up Od by and! In the period when they are paid following items does not appear on balance! Owed c. expenses when their future economic value expires the time of the following is considered to unearned! And revenues, but assets and liabilities recorded on the balance sheet at the time of the following accounts likely... Unearned revenue types of accounts in accounting “prepaid expense” is a personal account expires:.! And normal balance of unearned rent is: liability is a personal account purchase is realized in... 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