In a Chart of Accounts, Each Category of Accounts Is

question 3

Short Answer

In a Chart of Accounts, each category of accounts is given a ________ of numbers with gaps so that additional accounts can be added when needed.

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Definitions:

Prepaid Insurance

An asset account representing insurance premiums paid in advance, which are expensed as the insurance coverage pertains to future accounting periods.

Fees Earned

Revenue generated from professional services provided to clients.

Insurance Expense

The cost incurred by a business for obtaining insurance coverage against risks, reflected as a periodical premium payment in financial statements.

Credit

The provision of resources (like money) by one party to another, with the expectation of repayment or return in the future.