Michael Stayed at a Hampton Inn Last Weekend

question 75

Essay

Michael stayed at a Hampton Inn last weekend.What are the two categories of the purchase that he considers? Give an example of each category.

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Definitions:

Expense Account

An account used to track expenditures or costs incurred by a business or an individual for operational purposes.

Asset Account

An account that tracks resources owned or controlled by a business or individual which have economic value.

Unearned Items

Income received for goods not yet delivered or services not yet provided, considered a liability until the goods or services are delivered.

Adjusting Journal Entry

Adjusting journal entries are made in the accounting records to correct or allocate transactions in the appropriate accounting period for accurate financial reporting.