When a Prepaid Expense Is Initially Recorded as an Expense

question 161

Multiple Choice

When a prepaid expense is initially recorded as an expense, the adjusting entry:

• A)transfers the used portion to an asset account.
• B)transfers the unused portion to an asset account.
• C)transfers the used portion to an expense account.
• D)there is no need for an adjusting entry.

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Definitions:

Rising U.S. Health Care Costs

This term refers to the increasing expenditure on health care services in the United States, often attributed to factors like medical technology advancements, higher prices for services, and an aging population.

Part-time And Temporary Workers

Employees hired on a non-permanent or short-term basis, often working fewer hours than full-time positions.

Outsourcing

The business practice of hiring external firms or individuals to perform services or create goods that traditionally were performed in-house.

Health Insurance Coverage

Financial protection provided to individuals or groups for medical expenses, covering or reimbursing the costs associated with illness, injury, or preventative care.