For Prepaid Expense Adjusting Entries

question 129

Multiple Choice

For prepaid expense adjusting entries,

• A)an expense-liability account relationship exists.
• B)expenses are overstated and assets are understated prior to adjustment.
• C)the adjusting entry includes in a debit to an expense account and a credit to an asset account.
• D)none of these answer choices are correct.

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Definitions:

Organizational Structure

The system that outlines how activities are directed in order to achieve the goals of an organization, including rules, roles, and responsibilities.

Technology

The application of scientific knowledge for practical purposes, especially in industry and improvements in tools, machines, systems, and devices.

Organizational Structure

The way in which an organization arranges its hierarchy, roles, and responsibilities to achieve its objectives.

Departments

Units or divisions within an organization, each handling specific tasks or functions.