An Asset Created by a Payment for Economic Benefits That

question 86

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 credit to a prepaid expense account.
• C)Recorded as a credit to an unearned revenue account.
• D)Recorded as a debit to a prepaid expense account.
• E)Not recorded in the accounting records.

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Definitions:

Losses

Financial conditions reflecting that expenses have exceeded revenues, resulting in a negative net income.

Annual Salary

The total amount of money an employee is paid over the course of a year for their work, typically expressed as a yearly sum rather than hourly wages.

Partnership

A partnership is a legal form of business operation between two or more individuals who share management and profits.

Income Taxes

Taxes imposed by the government on the income generated by individuals or entities within its jurisdiction.