11 the second entry to adjust merchandise inventory includes a a debit to merchandis 4303535

 

11) The second entry to adjust Merchandise Inventory includes:

A) a debit to Merchandise Inventory.

B) a credit to Merchandise Inventory.

C) a debit to Income Summary.

D) None of these is correct.

12) Unearned Rent is what type of account?

A) Asset

B) Revenue

C) Liability

D) Expense

13) As Unearned Rent Revenue is earned, it becomes:

A) an asset.

B) a revenue.

C) a liability.

D) an expense.

14) Max received $6,000 in advance for renting part of his building. What is the entry to record the receipt of payment?

A) Debit Cash; credit Rent Expense

B) Debit Cash; credit Prepaid Rent Expense

C) Debit Cash; credit Unearned Rent Revenue

D) Debit Cash; credit Rental Income

15) Sam received $2,000 in advance for renting part of his building for 4 months. What is the entry to record the adjustment after one month has passed?

A) Debit Cash; credit Rental Income

B) Debit Cash; credit Unearned Rent Revenue

C) Debit Unearned Rent, credit Rental Income

D) Debit Unearned Rent, credit Cash

16) When the adjustment for Unearned Rent Revenue is made:

A) liabilities decrease.

B) revenue increases.

C) assets decrease.

D) Both A and B are correct.

17) Which of the following accounts is NOT a liability?

A) Accounts Payable

B) Salaries Payable

C) Unearned Rent

D) All of the above answers are liabilities.

18) Rental Income is what type of account?

A) Asset

B) Revenue

C) Expense

D) Liability

19) The normal balance for Unearned Rent Revenue is:

A) a credit.

B) a debit.

C) zero.

D) dependent on circumstances.

20) Unearned Rent Revenue results because:

A) no fee has been paid, and the service is not complete.

B) the fee is earned but not collected.

C) the fee has been collected before the service has been provided.

D) the fee has been paid, and the service is complete.