The advance cash receipts of future revenues are called:
A. accrued revenues.
B. prepaid expenses.
C. unearned revenues.
D. accrued expenses.
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The advance cash payments of future expenses are called:
A. accrued revenues.
B. prepaid expenses.
C. unearned revenues.
D. accrued expenses.
In accounting, depreciation refers to the:
A. method of spreading the cost of an asset over its useful life.
B. method of declining the market value of an asset to its book value.
C. method of estimation of an asset's current market value.
D. process of sale of a used asset.
The Accumulated Depreciation account is:
A. a record of the sum of all the depreciation expense recorded.
B. the price quoted to the buyer of a used asset.
C. an expense account.
D. the expense account used to expense the cost of an asset.
On January 1, 2015, the Accounts Receivable of Linda Company had a debit balance of $20,000. During January, the company provided services for $600,000 on account. The company collected $250,000 from its customers on account in January. What was the ending balance in the Accounts Receivable account at the end of January?
A. $350,000
B. $620,000
C. $370,000
D. $600,000
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