BUS 591 WEEK 2 QUIZ

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

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

       asset account.        revenue account.        contra revenue account.        liability.

       $18,000        $27,000        $20,000        $11,000

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

       $800 credit balance.        $400 debit balance.        $1,200 debit balance.        $400 credit balance.

       Prepaid Rent        Notes Receivable        Rent Revenue        Rent Expense

       $102,000        $87,000        $86,000        $95,000

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

       credit balances.        debit balances.        debit and credit balances.        debit or credit balances.