Prepaid and accrued income, irrec debts, allowance for doutful
Authored by Kathryn Wyre
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University
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8 questions
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1.
MULTIPLE CHOICE QUESTION
1 min • 1 pt
What is accrued income?
Income that has been received in advance
Income that has been earned but not yet received
Income that will never be received
Income that has been prepaid
2.
MULTIPLE CHOICE QUESTION
1 min • 1 pt
How is prepaid income recorded in the financial statements?
As an expense
As an asset
As a liability
As equity
3.
MULTIPLE CHOICE QUESTION
1 min • 1 pt
What is another term for irrecoverable debts?
Doubtful debts
Outstanding debts
Bad debts
Prepaid debts
4.
MULTIPLE CHOICE QUESTION
1 min • 1 pt
What is the purpose of an allowance for doubtful receivables?
To record income received in advance
To estimate the amount of future irrecoverable debts
To accrue income not yet received
To record prepaid expenses
5.
MULTIPLE CHOICE QUESTION
1 min • 1 pt
How does accrued income affect the income statement?
It increases expenses
It decreases revenues
It increases revenues
It has no impact
6.
MULTIPLE CHOICE QUESTION
1 min • 1 pt
What happens when a debt is deemed irrecoverable?
It is written off as an expense
It is added to accrued income
It is recorded as prepaid income
It is transferred to allowance for doubtful receivables
7.
MULTIPLE CHOICE QUESTION
1 min • 1 pt
How often should a business review its allowance for doubtful receivables?
Monthly
Quarterly
Annually
Periodically
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