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An aspiring scientist in a biology class wanted to conduct a study on the affects of cigarette smoke on the web-building ability of spiders.Which of the following statements is an incorrect use of terms pertaining to the scientific method?
Accrued Revenues
Accrued revenues are earnings recorded in the financial statements for goods delivered or services provided, although no cash has been received yet.
Prepaid Items
Prepaid items refer to expenses paid in advance for goods or services to be received in the future.
Adjusting Entries
These are journal entries made at the end of an accounting period to allocate income and expenditures to the period in which they actually occurred.
Expense Account
An account used to track expenditures or costs incurred by a business or an individual for operational purposes.
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