A Prepayment Is Originally Recorded as an Asset

question 136

Multiple Choice

A prepayment is originally recorded as an asset.Later,at the end of the accounting period,an adjustment is recorded causing a(n) ______ in the asset account and a(n) ______ in the expense account.

• A) increase; increase
• B) increase; decrease
• C) decrease; decrease
• D) decrease, increase

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Definitions:

Visual Imagery

The mental visualization of scenes, objects, or events without the immediate input of sensory information, often used in psychological therapy and cognitive training.

Dual-Coding Theory

A theory suggesting information is better retained when encoded both visually and verbally.

Semantic Codes

Representations of information in the mind in terms of meaning, rather than purely by the structure or appearance of words or phrases.

Visual Codes

The symbols, signs, or graphics used in communication systems to represent ideas, objects, or actions visually.