Olivia, a Citizen of Nebraska, Wants to File a Suit

question 19

Multiple Choice

Olivia, a citizen of Nebraska, wants to file a suit against Micah, a citizen of Kansas. Their diversity of citizenship may be a basis for​

• A) ​no court to exercise jurisdiction.
• B) ​a federal court to exercise original jurisdiction.
• C) ​a state court to exercise appellate jurisdiction.
• D) ​the United States Supreme Court to refuse jurisdiction.

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Definitions:

Prepaid Expense

Prepaid expense refers to payments made in advance for goods or services to be received in the future, recognized as assets on a balance sheet.

Unearned Service Revenue

Income received in advance for services that have not yet been performed, considered a liability until the service is delivered.

Adjusting Entries

Adjustments in accounting records at the end of a period to correctly distribute incomes and costs to the period they pertain to.

Prepaid Rent

Payments made in advance for rent, recorded as an asset on the balance sheet until it is consumed over time and moved to expense.