Darla Documentation,paid $1,900 to the Local Newspaper for Advertising That

question 86

Multiple Choice

Darla Documentation,paid $1,900 to the local newspaper for advertising that will begin in 30 days and continue for the following 6 weeks.How would Darla Documentation record this transaction?

• A)Debit Cash and credit Advertising Expense for $1,900
• B)Debit Prepaid Advertising and credit Advertising Expense for $1,900
• C)Debit Advertising Expense and credit Prepaid Advertising for $1,900
• D)Debit Cash and credit Prepaid Advertising for $1,900
• E)Debit Prepaid Advertising and credit Cash for $1,900

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Definitions:

Chronological Diary

A personal record of events or experiences, organized in the order that they occurred over time.

Accounting Equation

The fundamental equation of double-entry bookkeeping: Assets = Liabilities + Owner's Equity, balancing the total value of resources with the sources of those resources.

Net Loss

The amount by which total expenses exceed total revenues in a specific period, indicating a negative financial performance.

Owner's Equity

The residual interest in the assets of the entity after deducting liabilities, representing the ownership interest of the business owners.