The Adjusting Entry for a Prepaid Expense Always Involves A(n)

question 44

Multiple Choice

The adjusting entry for a prepaid expense always involves a(n) :

• A) liability account and a revenue account
• B) expense account and a liability account
• C) asset account and a liability account
• D) expense account and an asset account

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Definitions:

Five-Figure Accuracy

A level of precision where a numerical value is rounded to the nearest ten-thousandth place, representing the first five significant digits.

Terminating Decimal

A decimal fraction that has a finite number of digits after the decimal point.

Five-Figure Accuracy

A level of precision in numerical calculations or measurements where the result is accurate to five digits.

Four-Figure Accuracy

A level of precision in numerical representations where the number is rounded or truncated to four significant digits.