FABM Review

What are the 2 methods to be used in Adjusting Entries for the Adjustment for the Prepayment of Expense?

• Asset Method

• Expense Method

• Income Method

• Liability Method

Answer explanation

What are the 2 methods to be used in Adjusting Entries for the Adjustment for the Income collected in Advance or Unearned Income?

• Asset Method

• Expense Method

• Income Method

• Liability Method

Answer explanation

the original entry is changed to an asset account

• Asset Method

• Expense Method

• Income Method

• Liability Method

Answer explanation

expense account is changed when payment is made

• Asset Method

• Expense Method

• Income Method

• Liability Method

Answer explanation

income amount is credited when cash is received

• Asset Method

• Expense Method

• Income Method

• Liability Method

Answer explanation

a liability account is credited upon receipt of cash

• Asset Method

• Expense Method

• Income Method

• Liability Method

Answer explanation

The loss from uncollectible accounts is called ______. It is a nominal account which must be shown in the income.

• Income Summary

• Bad Debts

• Depreciation

• Expense

1st step in Accounting Cycle

• Posting

• Unadjusted Trial Balance

• Gathering of Transactions

• Closing/Reversing Entries

2nd step in Accounting Cycle

• Posting

• Journalizing

• Financial Statement

• Closing/Reversing Entries

3rd step in Accounting Cycle

• Posting

• Journalizing

• Financial Statement

• Closing/Reversing Entries