Which of the following accounts is not considered a temporary or nominal account? O service revenue O other revenue O unearned revenue O interest revenue

Q: Explain the difference between permanent accounts and temporary accounts. Why does an accounting…

A: Permanent accounts are the accounts which appear in the balance sheet of the entity and represent…

Q: Unearned Service Revenues are revenues with Credit as a normal balance O True O False

A: The question is multiple choice question. Required  Choose the Correct Option.

Q: ules of Debit and Credit Directions: Indicate whether each account identified is to be debited…

A: Accounting equation of the business says that all assets of the business must be equal to total…

Q: What is the difference between a nominal account and a real account?

A: The various accounts in the business are classified as personal accounts, real accounts, and nominal…

Q: Which of the following is a permanent account? a. Dividends Distributed b. Allowance for Doubtful…

A: Permanent accounts means an account which we do not write off in profit and loss account or trading…

Q: rue or False Unearned revenue is revenue that is earned but not yet collected

A: Solution Concept Unearned revenue                 The term unearned revenue means the revenue which…

Q: Which of the following accounts was created as the result of an accrual for expenses?  Group of…

A: Lets start with the basic understanding. Accrual for expense is a liability which is incur because…

Q: What is meant by the term unearned revenue? Where should an unearned revenue account appear in the…

A: Revenue: It refers to the amount earned by a business from selling its goods or services to the…

Q: Indicate whether a debit or credit decreases the normal balance of each of the following accounts.…

A: Definition: Rules of Debit and Credit: Following rules are followed for debiting and crediting…

Q: The preferred method of accounting for uncollectible accounts is ? A) net realizable method. B)…

A: Allowance for doubtful debts is considered as the contra asset item i.e used to decrease the value…

Q: Which of the following revenue whose recognition is put off into the future even though payment has…

A: Revenue is the total proceeds from sale of goods or services in the business. This is an important…

Q: Unearned Service Revenues are revenues with Credit as a normal balance True O False

A: Unearned Service Revenue The concept of unearned revenues in a firm in which the nature is not for…

Q: Which of the following accounts is a temporary account? O Prepaid Rent Expense O Accumulated…

A: Closing entries are used to close the temporary accounts. These are expense revenue accounts.

Q: Indicate whether each statement best describes the allowance (A) method or the direct write-off…

A: Allowance method:   It is a method for accounting for uncollectible receivables, where uncollectible…

Q: If the unearned interest is credited in the adjusting entry, which of the following will be…

A: An Unearned interest refers to an interest income collected by a lending institution before they…

Q: The ending balance in the account Deferred Revenues (or Unearned Fees) * ?should report which of the…

A: Deferred revenue seems to be payments from a consumer for upcoming products or services. Since the…

Q: Which of these accounts is never closed?A. Prepaid RentB. Income SummaryC. Rent RevenueD. Rent…

A: There are two type of accounts being used in accounting. One is temporary accounts and other is…

Q: he collection of customer’s account is credited to accounts payable. What is the effect of the error…

A: Answer) The correct Option is (D) No Effect Justifications: If collection from customer is credited…

Q: What is the difference between accrued liabilities an unearned Revenue accounts?

A: Accrued Liabilities :— An expenses of a Business or an Organization incurred  during a specific…

Q: The entry to write off an account receivable under the allowance method willT ( A. increase total…

A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…

Q: TRUE OR FALSE? The debit balances in suppliers' accounts should be netted against accounts payable.

A: Accounts payable is the amount owed by the business entity towards the suppliers in respect of the…

Q: What is the effect of the error in the net income of the current period and in subsequent period?

A: Payment made to supplier is debited for decrease in balance as accounts payable which is liability…

Q: which is an example of prepaid expense? A. unearned fees B. supplies C. unearned subscriptions…

A: Prepaid expense:   Expenses of future period are paid in advance. These expenses are called prepaid…

Q: Salaries owed but not yet paid is an example of which of the following? deferred expense or prepaid…

A: Accrued expenses are those expenses which are incurred for the particular period of time, but has…

Q: Question 36 is used to settle an obligation arising from purchase of goods or services as a…

A: Hi student Since there are multiple questions, we will answer only first question.

Q: Failure to record the typical balance day adjustment to the Unearned Revenue account would: Select…

A: Unearned Revenue: If you get money for a service or product that has not yet been offered or…

Q: The practice of recording advance payments from customers as a liability is an example of applying…

A: Under the Cash Basis of Accounting, revenue is considered only when the actual amount is received…

Q: A revenue account is closed by debiting Income Summary and crediting Service Revenue. True or False

A: A major step in the accounting cycle that must not be skipped by any company is the closing process.…

Q: What is the impact on the accounting equation when a payment of account payable is made?A. both…

A: Accounting equation of the business has three elements, these are Assets, Liabilities and Equity.…

Q: Which of the following accounts is considered a temporary or nominal account?A. Fees Earned…

A: There are two type of accounts used in business. One is permanent accounts and other is temporary…

Q: transactions that require an adjusting entry (debit) to unearned revenue?

A: Concept introduction:  Adjusting entries are required to adjust the accounts according to the…

Q: An asset created by a payment for economic benefits that does not expire until some later time is…

A: Lets start with the basic understanding. Prepaid expense is expense which is paid currently but…

Q: Revenue, and expense accounts are Temporary accounts Permanent accounts Adjusting accounts Accounts…

A: Revenues are the incomes earned and expenses are outlays incurred by an entity.

Q: How is the Income Summary account used? Is it a temporary or permanent account?

A: Income summary is an account which is prepared for closing accounts. It is prepared at the end of…

Q: The payment of supplier's account is debited to accounts receivable. What is the effect of the error…

A: Ans. The error while passing journal entries leads to overstated or understate of profits.

Q: Which of the following are all temporary accounts? a.Liabilities and assets b.Liabilities, revenue,…

A: Temporary accounts are those which are closed at the end of each accounting year. So at the end of…

Q: Define the followings? a. Real Account. b. Temporary Account.

A: a.Real Account:Real accounts are a general ledger account that does not close during the accounting…

Q: Which statement is not true about accrual and deferral? A. A deferred income is an amount collected…

A: Accruals: Accruals are the revenues that are earned but not received, and expenses that are incurred…

Q: All of the following about revenue recognition principle are false, except: O a. It is the basis for…

A: According to the Accounting principle, “Revenue Recognition” revenue should be recorded in the books…

Q: What kind of account is Unearned Revenue?

A: Unearned Revenue is the revenue received in advance. It is the amount of cash received for which…

Q: What type of account is Unearned Revenue?

A: The question deals with what type of account is Unearned Revenue

Q: The income summary account is also called the clearing account the zero-out account the imprest…

A: Income summary is an account which shows the amount earned as revenue from operation and all related…