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.

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Definitions:

Ottonian Church

The Ottonian Church refers to churches built or influenced during the Ottonian dynasty in Germany (919-1024), characterized by Romanesque architectural features.

Alternate-Support System

refers to a structural innovation in Gothic architecture, where supports alternate between strong (piers) and weak (columns), allowing for higher and lighter walls and more window space.

Upper Gallery

A higher level or balcony in a building, especially in a theater or church, offering additional space for viewing.

Burial Group

A collection of artifacts or remains placed together in a grave, typically from the same period or culture.