Problem 9-1 True / False Questions Timing Issues Related to Adjusting Entries If this problem is assigned as a homework turn-in, use the form in the Excel workbook Chapter 09 b - Problem 9-1 Answer Sheet to record your answers. For each item in the Account column, determine if the entries in the other three columns are correct. If all three entries are correct, then highlight True. If one or more of the entries are not correct, then highlight False. True or False Account Account Category When Does Cash Flow? When is Revenue or Expense Recognized? T F 1. Prepaid Maintenance Prepaid Asset Before expense recognition Expense is recognized after cash flows out T F 2. Interest Receivable Accrued Asset Before revenue recognition Revenue is recognized after cash flows in T F 3. Equipment Property, Plant & Equipment Before expense recognition Expense is recognized after cash flows out T F 4. Rent Payable Accrued Liability Before expense recognition Expense is recognized after cash flows out T F 5. Unearned Rent Revenue Unearned Revenue Before revenue recognition Revenue is recognized after cash flows in T F 6. Buildings Property, Plant & Equipment After expense recognition Expense is recognized before cash flows out T F 7. Prepaid Rent Prepaid Asset Before expense recognition Expense is recognized after cash flows out T F 8. Interest Payable Unearned Revenue After expense recognition Expense is recognized before cash flows out T F 9. Unearned Ticket Revenue Unearned Revenue Before revenue recognition Revenue is recognized after cash flows in T F 10. Rent Receivable Accrued Asset After revenue recognition Revenue is recognized before cash flows in T F 11. Prepaid Insurance Prepaid Asset Before expense recognition Expense is recognized after cash flows out T F 12. Unearned Subscription Revenue Prepaid Asset Before revenue recognition Revenue is recognized after cash flows in