MATCHING: -Debts Established in the Course of Business That Are Currently

question 29

Multiple Choice

MATCHING:
-Debts established in the course of business that are currently due from others

• A)spendthrift
• B)life estate
• C)disinheritance
• D)dividend
• E)fair market value
• F)homestead
• G)receivables
• H)life insurance
• I)contract for deed
• J)primary beneficiary

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Definitions:

Prepaid Expenses

Prepaid expenses are future expenses that have been paid in advance, recognized as assets on a balance sheet until the services or goods are received or the expense is incurred.

Accrued Expenses

Accrued expenses are liabilities recognized on the books before they have been billed or paid.

Adjusting Entries

Entries made at the end of an accounting period to update the accounts for items that are not recorded during the regular accounting period.

Accrued Revenues

Revenue that has been earned but not yet received in cash or recorded, representing assets on the balance sheet.