11) Fixed assets that are depreciated are sometimes

A) accounts payable.

B) current assets.

C) long-term assets.
D) long-term liabilities.

12) Which of the following accounts would never be a

A) Prepaid rent
B) Supplies
C) Inventory

D) Cash

E) Depreciation MIRAYA GABA

13) The total dollars in an accumulated depreciation

A) added to the corresponding asset account.

B) divided into the corresponding asset account.

C) subtracted from the corresponding asset account
D) subtracted from the corresponding liability accou

E) divided into the corresponding liability account

14) Item costs that have been incurred, but not yet pa

15) Adjusting entries for supplies and prepaid rent

16) Interest revenue would be an example of a(n) ___

17) The value of an asset after all allowable deprecia

18) Income taxes payable would be an example of a(n

19) Prepaid rent would be an example of a(n) _______

20) Unearned subscriptions revenue would be an exa

Answer 11
C) long-term assets.
Long term assets are the assets which are used for a period of more than 12 months. They are
also known as Fixed Assets.

Answer 12
D) Cash
Cash is an asset and is not to be adjusted. The expenses and incomes are adjusted at the end of
the year.

Answer 13
C) subtracted from the corresponding asset account.
The total of accumulated depreciation is subtracted from the corresponding asset account to
arrive at the Net amount of the asset value.

Answer 14
Accrued expenses
The expenses which have been incurred but not paid till the end of the year are called accrued
expenses.

Answer 15
Deferred expenses

Deferred expenses are the expenses which are paid in advance and not incurred when paid.
Supplies are purchased and are paid for but it is not used and rent is prepaid for future periods.

Answer 16
Accrued income

Accrued income is the income which has been earned but not received. Interest revenue is an
example of income which has been earned but not received. It will be received after a
particular period.

Answer 17
Salvage Value
Salvage Value is the residual value remaining after providing for all the depreciation of the
asset.

Answer 18
Accrued expenses

The expenses which have been incurred but not paid till the end of the year are called accrued
expenses. Income tax is accured at the end of the year and paid after the end of the year.

Answer 19
Deferred expenses
Deferred expenses are the expenses which are paid in advance and not incurred when paid.
Rent is prepaid for future periods.

Answer 20
Deferred revenue

Deferred revenue is a revenue which is received in advance. Unearned subscriptions revenue is

received in advance and the income is earned in future periods.