The Adjusting Entry to Account for the Expiration of Prepaid

question 72

Multiple Choice

The adjusting entry to account for the expiration of prepaid advertising consists of:

• A)a debit to Prepaid Advertising and a credit to Accumulated Depreciation.
• B)a debit to Prepaid Advertising and a credit to Advertising Expense.
• C)a debit to Advertising Expense and a credit to Accumulated Depreciation.
• D)a debit to Advertising Expense and a credit to Prepaid Advertising.

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Definitions:

Real Estate Sales Agreement

A legally binding contract between a buyer and a seller outlining the terms and conditions of the sale of real property.

Legal Description

A precise way of describing a piece of land in legal documents.

Contingent

Dependent on certain conditions or events which must occur before an agreement or commitment is fulfilled.

Temporary Insurance

Short-term insurance coverage provided to an individual or entity until a permanent insurance policy is issued.