At the Time a Company Prepays a Cost

question 63

Multiple Choice

At the time a company prepays a cost

• A) it debits an asset account to show the service or benefit it will receive in the future.
• B) it debits an expense account to match the expense against revenues recognized.
• C) its credits a liability account to show the obligation to pay for the service in the future.
• D) it credits an asset account and debits an expense account.

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Definitions:

Graves' Disease

A condition where the immune system mistakenly attacks the thyroid gland, resulting in its excessive activity and leading to hyperthyroidism.

Circulatory System

The body's system responsible for the movement of blood, nutrients, oxygen, carbon dioxide, and hormones to and from cells throughout the body to provide nourishment, help in fighting diseases, maintain a stable internal environment, and remove waste.

Diabetes

Diabetes is a chronic condition characterized by high levels of glucose in the blood, resulting from the body's inability to produce or effectively use insulin.

Graves' Disease

An autoimmune disorder characterized by the overproduction of thyroid hormones, leading to hyperthyroidism.