An Adjusting Entry That Increases an Expense on the Income

question 167

True/False

An adjusting entry that increases an expense on the income statement and decreases an asset on the statement of financial position is the result of prepaid expenses that expire with the passage of time.

---

Definitions:

Homeostasis

The tendency of a biological system to maintain stable internal conditions despite changes in external environments.

Insulin

A pancreas-derived hormone that assists in controlling blood glucose levels by facilitating the entry of glucose into the body's tissues.

Glucose

A simple sugar that is an important source of energy and is involved in many metabolic processes.

Nitrogenous Waste

Waste products that contain nitrogen, typically produced by the metabolic processing of proteins and nucleic acids, and excreted in the form of urea, ammonia, uric acid, or creatinine.