It Is Important to Distinguish Between a Value and a Label

question 70

Essay

It is important to distinguish between a value and a label when entering information into an Excel worksheet. Please describe both a label and a value.

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Definitions:

Prepaid Insurance

Refers to payments made in advance for insurance coverage, recognized as an asset on the balance sheet until the coverage period lapses.

Prepaid Expenses

Expenses paid in advance by a company for goods or services to be received in the future, reported as current assets on the balance sheet.

Adjusting Entry

Journal entries made at the end of an accounting period to update account balances before financial statements are prepared.

Expense Accounts

Accounts used to record expenses in the general ledger, capturing costs associated with operating the business.