Ac 2760 Topic 03 Quiz

Top of Form Attempt 1 Written Dec 13, 2017 217 AM - Dec 13, 2017 249 AM Submission View Your quiz has been submitted successfully. Question 12 / 2 pointsUNI Co. received 1,000 advance from Newbie as rent for the use of a building owned by UNI. How does this transaction affect UNIs accounts if UNI recognizes a liability HTMLCONTROL Forms.HTMLOption.1 A) It is not recorded. HTMLCONTROL Forms.HTMLOption.1 B) Cash is increased and revenue is increased. HTMLCONTROL Forms.HTMLOption.1 C) Cash is increased and revenue is decreased. HTMLCONTROL Forms.HTMLOption.1 D) Cash is increased and unearned revenue is increased. Question 22 / 2 pointsOn April 1, Smart, Inc. paid 7,200 for an insurance premium on a three-year insurance policy. How does this transaction affect Smarts accounts HTMLCONTROL Forms.HTMLOption.1 A) Increase insurance expense and decrease cash by 7,200 each HTMLCONTROL Forms.HTMLOption.1 B) Increase prepaid insurance and decrease retained earnings by 7,200 each HTMLCONTROL Forms.HTMLOption.1 C) Increase unearned insurance and decrease cash by 7,200 each HTMLCONTROL Forms.HTMLOption.1 D) Increase prepaid insurance and decrease cash by 7,200 each Question 32 / 2 pointsAs time passes, fixed assets, other than land, lose their capacity to provide useful services. To account for this decrease in usefulness, the