Reference no: EM132782472

Problem 1: When an entity pays for goods or services before actual receipt, the payment should be recorded as a decrease in Cash and an increase in

Option 1: an asset.
Option 2: an expense.
Option 3: an owner's equity account.
Option 4: a liability.

Problem 2: Entries recorded on the right side of any account are called

Option 1: debits.
Option 2: increases.
Option 3: Credits.
Option 4: Decreases.

Problem 3: Which of the following accounts probably would be listed after the others in a chart a of accounts?

Option 1: Unearned Art Fees
Option 2: Prepaid Rent
Option 3: Owner's Capital
Option 4: Art Revenues

Problem 4: Unearned Revenues are recorded by companies that

Option 1: pay money in advance of the performance of a service.
Option 2: pay money at the time the performance of a service is complete.
Option 3: receive money in advance of the performance of a service.
Option 4: receive money at the time the performance of a service is complete.