Page 58 - UNANET GOVCON: CLOSING A FISCAL PERIOD

8. For Vendor Payments (VP) in the GL Details report, which accounts are debited and
credited?
a) Debit Expense - Various Expenses and Credit Asset - AP - This is an
incorrect response because This entry relates to recording an expense from a
vendor invoice.
b) Debit Asset - AP and Credit Asset - Operating Bank Account - This is the
correct response because A vendor payment decreases the Accounts
Payable (AP) liability (a debit) and decreases the cash in the bank account (a
credit).
c) Debit Asset - Unbilled and Credit Revenue - Revenue - This is an incorrect
response because This entry relates to revenue recognition, not paying
vendors.

9. For a Billing & Revenue Post (BR) in the GL Details report, which accounts are
debited and credited?
a) Debit Expense - Various Expenses and Credit Asset - AP - This is an
incorrect response because This entry relates to recording an expense from a
vendor invoice.
b) Debit Asset - AP and Credit Asset - Operating Bank Account - This is an
incorrect response because This entry represents the payment of a vendor
invoice.
c) Debit Asset - Unbilled and Credit Revenue - Revenue - This is the correct
response because This entry reflects the recognition of earned revenue,
moving the value from a temporary holding account (Unbilled) to a permanent
revenue account.

10. For Customer Invoices (CI) in the GL Details report, which accounts are debited and
credited?
a) Debit Asset - AR and Credit Asset - Unbilled - This is the correct response
because Creating a customer invoice moves the value from an unbilled status
to Accounts Receivable (AR), signifying that the customer now owes the
money.
b) Debit Asset - Operating Bank and Credit Asset - AR - This is an incorrect
response because This entry represents receiving a customer payment.
c) Debit Asset - Unbilled and Credit Revenue – Revenue - This is an incorrect
response because This entry represents recognizing revenue from the B&R
Post, which typically happens before or at the same time as invoicing, but it is
not the entry for the invoice itself.

APPENDIX A: ANSWER KEY Page 58
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