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Test Information nstructios Timed Test This test has a time limit of 2 hours and 20 minutes.This test will save and submit automatically when the time warmgs appear when half the time. S minutes 1 minute, 30 seconds reman utole Attempts Not allowed This test can only be taken once Force Complietion This test can be saved and resumed at any point unti time has expired. The timer will continue to run if you leave the Remaining Time: 1 hour, 16 minutes, 46 seconds Question Completion Status 9 10 12 13 14 15 16 17 1819 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 4344 4546 47 48 49 s0 Moving to another question will save this response Question 21 of 50 Question 21 2 points Save Answ 2ypex Company uses the accrual basis of accounting Each of the following events occurred during August. Which one of them should be reported as an expense for August A. Office supplies costing $800 were used in August. They had been purchased and paid for during May B A new delivery truck was purchased on the last day of August. it was not put into use until September. C.On August 3rd. $8,000 was paid to employees for hours worked during the month of july OD. Near the end of August Septembers rent of $1,500 was paid in advance. Question 21 of s0

Solution

Answer: Option A

Explanation:

Office supplies used are to be expensed during the period in which they are used.

B) Delivery truck is an asset. As it was purchased at the end of August and was not put to use no depreciation expense is to be accounted for.

C) Though the payment is made in August, the expense has been incurred for July and would have been accrued during July itself.

D) The rent paid relates to September, and hence to be treated as prepaid rent.