ACC 221 UPDATED 2026 EXAMINERS SET
QUESTIONS AND ANSWERS SURE A+
✔✔Accumulated Depreciation - ✔✔the total amount of depreciation expense that has
been recorded since the purchase of a plant asset
✔✔The balance sheet account that depreciation is recorded to is - ✔✔Accumulated
Depreciation
✔✔Supplies expense is Blank______ and supplies is Blank______ for the amount of
supplies used during the period that were originally recorded as an asset when
purchased. - ✔✔debited; credited
✔✔The normal balance of the contra asset accumulated depreciation account is a(n) -
✔✔credit
✔✔On April 1, Larken Corp. pays $36,000 for 3 years of rent. The transaction is
appropriately recorded as prepaid rent. The adjusting entry on December 31, of the
same year, will require a (Select all that apply.)
debit to prepaid rent
credit to prepaid rent
debit to rent expense
credit to rent expense - ✔✔credit to prepaid rent
, debit to rent expense
✔✔Deferred revenue should be classified as a(n) ____________ on the balance sheet.
- ✔✔liability
✔✔Deffered Revenue - ✔✔a liability resulting from the receipt of cash before the
recognition of revenue
✔✔To record an adjusting entry when deferred revenue is recognized:
revenue is debited
deferred revenue is credited
revenue is credited
deferred revenue is debited - ✔✔revenue is credited
deferred revenue is debited
✔✔Accruals - ✔✔revenues earned or expenses incurred before cash has been
exchanged (ex: using the services of another entity in one period and paying in a
subsequent period)
✔✔Accruals occur when cash flow comes: (Select all that apply.)
before revenue recognition
after expense recognition
after revenue recognition
before expense recognition - ✔✔after expense recognition
after revenue recognition
✔✔Accumulated depreciation is (Select all that apply.)
an expense account
a stockholder's equity account
a balance sheet account
a contra asset account - ✔✔a balance sheet account
a contra asset account
✔✔Accrued liabilities are:
expenses incurred before cash was paid
expenses paid at the time incurred
expensed in a later period than the cash was paid - ✔✔expenses incurred before cash
was paid
✔✔deferred revenue (unearned revenue) - ✔✔cash is received before revenue is
earned, reflects the company's liability to provide services in the future (debit to liability
& credit to revenue)
✔✔Deferred revenue is a(n):
QUESTIONS AND ANSWERS SURE A+
✔✔Accumulated Depreciation - ✔✔the total amount of depreciation expense that has
been recorded since the purchase of a plant asset
✔✔The balance sheet account that depreciation is recorded to is - ✔✔Accumulated
Depreciation
✔✔Supplies expense is Blank______ and supplies is Blank______ for the amount of
supplies used during the period that were originally recorded as an asset when
purchased. - ✔✔debited; credited
✔✔The normal balance of the contra asset accumulated depreciation account is a(n) -
✔✔credit
✔✔On April 1, Larken Corp. pays $36,000 for 3 years of rent. The transaction is
appropriately recorded as prepaid rent. The adjusting entry on December 31, of the
same year, will require a (Select all that apply.)
debit to prepaid rent
credit to prepaid rent
debit to rent expense
credit to rent expense - ✔✔credit to prepaid rent
, debit to rent expense
✔✔Deferred revenue should be classified as a(n) ____________ on the balance sheet.
- ✔✔liability
✔✔Deffered Revenue - ✔✔a liability resulting from the receipt of cash before the
recognition of revenue
✔✔To record an adjusting entry when deferred revenue is recognized:
revenue is debited
deferred revenue is credited
revenue is credited
deferred revenue is debited - ✔✔revenue is credited
deferred revenue is debited
✔✔Accruals - ✔✔revenues earned or expenses incurred before cash has been
exchanged (ex: using the services of another entity in one period and paying in a
subsequent period)
✔✔Accruals occur when cash flow comes: (Select all that apply.)
before revenue recognition
after expense recognition
after revenue recognition
before expense recognition - ✔✔after expense recognition
after revenue recognition
✔✔Accumulated depreciation is (Select all that apply.)
an expense account
a stockholder's equity account
a balance sheet account
a contra asset account - ✔✔a balance sheet account
a contra asset account
✔✔Accrued liabilities are:
expenses incurred before cash was paid
expenses paid at the time incurred
expensed in a later period than the cash was paid - ✔✔expenses incurred before cash
was paid
✔✔deferred revenue (unearned revenue) - ✔✔cash is received before revenue is
earned, reflects the company's liability to provide services in the future (debit to liability
& credit to revenue)
✔✔Deferred revenue is a(n):
