Financial Accounting Exam -2 _ (DETAILED ANSWERS) 2024 - DISTINCTION GUARANTEED.pdf

8/1/24, 7:11 AM 1/4 Financial Accounting Exam #2 Jeremiah Terms in this set (36) Which of the following is a long term asset? a.) allowance b.) service revenue c.) interest receivable d.) land d.) land What account needs an adjustment at the end of the period? Unearned revenue What is the account classification and normal balance of Equipment? Asset, Debit A deferral is: an adjustment for receipt of cash in advance and an adjustment for payment of an item in advance According to the expense recognition principle: expenses are recorded in the period they are actually used Which of the following is a contra -asset account? a.) Common Stock b.) Salary expense c) Accumulated Depreciation d.) Retained Earnings c.) Accumulated Depreciation The prepaid insurance account has a beginning balance of $8000. Additional insurance premiums in the amount of $12000 were paid during the year. At year-end, there is $3000 of insurance coverage remaining. The entry needed to adjust the account is: Debit insurance expense $17000 Credit Prepaid insurance $17000 Which asset doesn't depreciate? Land