Podcast
Questions and Answers
Which method recognizes the unearned portion as a liability at the end of the period?
Which method recognizes the unearned portion as a liability at the end of the period?
- Income method for recording expenses (correct)
- Liability method for recording income
- Asset method for recording income
- Expense method for recording expenses
Which accounts have both real and nominal components?
Which accounts have both real and nominal components?
- Mixed accounts (correct)
- Expense accounts
- Asset accounts
- Personal accounts
Under the liability method of initial recording of income, where are cash receipts initially credited?
Under the liability method of initial recording of income, where are cash receipts initially credited?
- Expense account
- Income account
- Asset account
- Liability account (correct)
What is the key characteristic of mixed accounts?
What is the key characteristic of mixed accounts?
In which account are cash disbursements for expenses initially debited under the asset method?
In which account are cash disbursements for expenses initially debited under the asset method?
What remains as a liability at the end of the period in the liability method of income recording?
What remains as a liability at the end of the period in the liability method of income recording?
Under what method are cash receipts from items of income initially credited to an income account?
Under what method are cash receipts from items of income initially credited to an income account?
What is recognized as an expense at the end of the period under the asset method for recording expenses?
What is recognized as an expense at the end of the period under the asset method for recording expenses?
'Real Accounts' have components that are related to which accounting aspect?
'Real Accounts' have components that are related to which accounting aspect?
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