In Thornthwaite's P/E Index, "P" and "E" Stand for ____

question 32

Multiple Choice

In Thornthwaite's P/E index, "P" and "E" stand for ____, respectively.

• A)precipitation and evaporation
• B)precipitation and energy availability
• C)potential sunlight and energy
• D)potential sunlight and evaporation
• E)photosynthesis and evaporation

---

Definitions:

Prepaid Expense

Prepaid Expense represents payments made in advance for goods or services to be received in the future, recognized as an asset until the benefit is consumed.

Insurance Policy

A contract between an insurer and policyholder specifying the terms and conditions under which the insurer agrees to compensate the policyholder for specified losses.

Paid

Refers to the status of an account or invoice on which the due amount has been settled.

Adjusting Entry

A journal entry made in the accounting records at the end of an accounting period to allocate income and expenditures to the period in which they actually occurred.