Chapter 3

Question 1

Salaries payable is a liability from a(n) (deferred/accrued) expense.

Answer 1

Accrued

Question 2

Amazon records revenue when customers pay for purchases online that are to be shipped in one week. They are using (cash/ Accrual) Basis Accounting.

Answer 2

Cash

Question 3

You pay your $80 phone bill for July on the 1st and record the expense on the 31st. You are using (Cash/Accrual) Basis accounting

Answer 3

Accrual

Question 4

Prepaid rent is an asset associated with a(n) (deferred/accrued) expense.

Answer 4

Deferred

Question 5

A restaurant issuing a gift card is an example of (deferred/accrued) revenue

Answer 5

Deferred

Question 6

Being paid a month after doing a job is (deferred/accrued) revenue.

Answer 6

Accrued