For a Prepaid Expense, the Adjusting Entry Would

question 178

Multiple Choice

For a prepaid expense, the adjusting entry would

• A) Result in a debit to an expense account and a credit to an asset account
• B) Cause a prepaid expense to be overstated and liabilities to be understated
• C) Result in a credit to an expense account and a debit to an asset account
• D) Result in a debit to a liability account and a credit to an asset account
• E) Decrease cash

---

Definitions:

Elaborative Rehearsal

A memory technique that involves thinking about the meaning of the information and making connections to existing memories or knowledge.

Maintenance Rehearsal

A cognitive process involving the repetition of information to keep it in short-term memory or to encode it into long-term memory.

Long-Term Memory

The phase of the memory process responsible for the storage of information over extended periods, potentially lasting from days to a lifetime.

Long-Term Memory

A type of memory capable of storing information for extended periods, often throughout a person's life.