Avalon Event Planning Services,Inc

question 29

True/False

Avalon Event Planning Services,Inc.records deferred expenses and deferred revenues using the alternative treatments.It makes adjusting entries as needed to bring its books to the full accrual basis once a year at the end of the year.On October 1,it paid $3,600 for insurance for a one-year period.At the end of the year,it will make an adjusting entry that debits Insurance Expense for $1,200.

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Definitions:

Disposable Income

Net financial resources for households to allocate towards spending and savings after income taxation.

Savings

The portion of income not spent on consumption of goods and services, often put aside for future use or investment.

Disposable Income

Financial assets available to households for expenditure and savings after income taxes.

Inventory Investment

The net change in physical inventory levels for businesses over a certain period, indicating how much companies are spending to stock goods.