Pattie's Event Planning Service Records Prepaid Expenses as Expenses When

question 157

True/False

Pattie's Event Planning Service records prepaid expenses as expenses when cash is paid out,and records unearned revenues as revenues when cash is collected.She then makes adjusting entries as needed to bring her books up to the full accrual basis once a year at the end of the year.This year on October 1,she paid out $3,600 for insurance for a one-year period.At the end of the year,she will make an adjustment entry that debits Insurance expense for $900.

---

Definitions:

Classical Conditioning

An educational mechanism where two stimuli are repeatedly linked together; eventually, a response originally provoked by the second stimulus is induced by only the first stimulus.

Dog Food

A type of food specifically formulated and intended for consumption by dogs and other related canines.

Road Construction

The building and maintenance of roads, including planning, designing, and managing the construction process to ensure efficient transportation.

Habituation

A psychological learning process wherein there is a decrease in response to a stimulus after repeated exposures, signifying an adaptation or getting used to the stimulus.