Oracle
1Z0-961 · Question #63
1Z0-961 Question #63: Real Exam Question with Answer & Explanation
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Question
You are using the Payable's Deferred Expense feature (also known as Multiperiod Accounting). You have entered an invoice for a three-month lease that is entered on Jan 10th. The total expense is $12,000 and it covers the rental period from Jan 1st to mar 31st. Assuming that the rental expenses are split evenly per month and a monthly accounting calendar is used, what would the accounting entry be?
Options
- AOn Jan 10th, Debit Prepaid Expense 12,000 and Credit Liability for 12,000and thenOn
- BOn Jan 10th, Debit Prepaid Expense 12,000 and Credit Liability for 12,000
- COn Jan 31st, Debit Rental Expense for 4,000 and Credit Prepaid Expense for 4,000On
- DOn Mar 31st, Debit Rental Expense for 4,000 and Credit Prepaid Expense for 4,000On
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