BUS 591 week 2 Quiz

      [removed]debit Utilities Expense and credit Accounts Receivable.
      [removed]debit Utilities Expense and credit Accounts Payable.
      [removed]debit Accounts Payable and credit Utilities Expense.
      [removed]make no entry until the bill is paid.

      [removed] No, GAAP requires that 10% of the cost be expensed each year. This minimizes attempts to mislead financial statement users.
      [removed] Yes, the matching principle requires that the cost be expensed in the period of purchase.
      [removed] No, the cost needs to be allocated to the years of expected use.
      [removed] Yes, the actual life of the asset is not known, thus there is no acceptable way to allocate the cost.

      [removed]asset account.
      [removed]revenue account.
      [removed]contra revenue account.
      [removed]liability.

      [removed] $18,000
      [removed] $27,000
      [removed] $20,000
      [removed] $11,000

      [removed]debit Laundry Supplies Expense, $2,000; credit Laundry Supplies, $2,000.
      [removed]debit Laundry Supplies, $4,500; credit Laundry Supplies Expense, $4,500.
      [removed]debit Laundry Supplies, $2,000; credit Laundry Supplies Expense, $2,000.
      [removed]debit Laundry Supplies Expense, $4,500; credit Laundry Supplies, $4,500.

      [removed] $800 credit balance.
      [removed] $400 debit balance.
      [removed] $1,200 debit balance.
      [removed] $400 credit balance.

      [removed] Prepaid Rent
      [removed] Notes Receivable
      [removed] Rent Revenue
      [removed] Rent Expense

      [removed] $102,000
      [removed] $87,000
      [removed] $86,000
      [removed] $95,000

      [removed]they contribute to the production of revenue.
      [removed]they are paid.
      [removed]they are billed by the supplier.
      [removed]the invoice is received.

      [removed]credit balances.
      [removed]debit balances.
      [removed]debit and credit balances.
      [removed]debit or credit balances.