Patricia Event Planning Service Records Prepaid Expenses and Unearned Revenues

question 40

True/False

Patricia Event Planning Service records prepaid expenses and unearned revenues using the alternative treatments. Patricia makes adjusting entries as needed to bring her books to the full accrual basis once a year at the end of the year. On December 15, she collected $1,000 from a customer in advance for a series of events that will start late December and end in March. At the end of the year, she rendered approximately 10% of the services for her customer. The adjusting entry on December 31 will include a debit to Service Revenue for $900.

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Definitions:

Positive Reinforcement

The addition of a stimulus to increase the probability that a behavior will be repeated.

Negative Reinforcement

A behavioral technique that involves the removal of an unpleasant stimulus to increase the likelihood of a behavior being repeated.

Positive Reinforcement

The addition of a stimulus following a desired behavior that increases the likelihood of the behavior being repeated.

Negative Punishment

A behavior modification method where something desirable is removed to decrease the likelihood of a particular behavior occurring again.