When a Prepaid Expense Is Recorded Initially as an Expense

question 163

True/False

When a prepaid expense is recorded initially as an expense, the adjusting entry transfers the unused portion of the expense to the asset account.

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Definitions:

Reward

A benefit or positive reinforcement given for a specific behavior, encouraging that behavior to be repeated.

Flashbulb Memory

A vivid and detailed memory of a significant event.

Emotional Event

An occurrence that triggers a strong emotional response, such as joy, sadness, fear, or anger.

Vivid

Producing powerful feelings or strong, clear images in the mind.