An Asset Created by a Payment for Economic Benefits That

question 127

Multiple Choice

An asset created by a payment for economic benefits that does not expire until some later time is

• A) recorded as a debit to an unearned revenue account
• B) recorded as a debit to a prepaid expense account
• C) recorded as a credit to an unearned revenue account
• D) recorded as a credit to a prepaid expense account
• E) not recorded in the accounting records

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Definitions:

Foreseeable Future

A term used to describe a period of time in which events are predicted or expected to occur.

Market Return

The total return on an investment, reflecting both capital gains and dividends, over a specific period.

Required Return

The return a investor expects to earn on an investment, taking into account the risk associated with it.

Selling

The act of offering goods or services in exchange for money or other compensation.