Dexter Corp

question 91

Multiple Choice

Dexter Corp. received cash for a service that is to be performed in the next accounting period. How should this transaction be accounted for?

• A)As accrued revenue.
• B)As an expense.
• C)As a prepaid expense.
• D)As a liability.

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Definitions:

Mental Activity

The cognitive functions and processes that occur within the mind, such as thinking, reasoning, and imagining.

Hypnosis

A trance-like state characterized by increased focus, concentration, and suggestibility, often used for therapeutic purposes.

Meditation

A practice where an individual uses a technique – such as mindfulness, or focusing the mind on a particular object, thought, or activity – to train attention and awareness, and achieve a mentally clear and emotionally calm and stable state.

REM Sleep

The stage of sleep where a person experiences rapid eye movements, dreaming, and paralysis of motor systems; EEGs show beta wave activity, which is also associated with an awake, conscious mind.