An Asset Created by Prepayment of an Expense Is

question 78

Multiple Choice

An asset created by prepayment of an expense is:

• A) Recorded as a debit to an unearned revenue account.
• B) Recorded as a debit to a prepaid expense account.
• C) Recorded as a credit to an unearned revenue account.
• D) Recorded as a credit to a prepaid expense account.
• E) Not recorded in the accounting records until the earnings process is complete.

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Definitions:

Pupil

The black circular opening in the center of the iris of the eye, which regulates the amount of light that enters.

Accommodation

The process of adjusting thoughts or schemas to incorporate new information or experiences.

Lens

A transparent optical device used to converge or diverge transmitted light and to form images.

Visual Acuity

The clarity or sharpness of vision, a measure of how well a person can see details at a distance.