Match the Following Types of Adjusting Entries to the Listed

question 52

Multiple Choice

Match the following types of adjusting entries to the listed situation. (Choices may be used more than once.)
-Two years insurance premium was paid in advance

• A)a deferred (prepaid) expense
• B)a deferred (unearned) revenue
• C)an accrued expense
• D)an accrued revenue

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Definitions:

Long-run Aggregate Supply

The total production of goods and services in an economy at full employment, assuming no changes in technology and resources.

Lockbox System

A service provided by banks to companies for the collection of payments from customers, involving the use of a special post office box.

Cash Conversion

The process by which a company turns its inventory or other current assets into cash, often measured through cycles or time periods.

Usable Cash

The portion of cash balances that is readily available for business operations or other immediate use, excluding reserved or allocated funds.