Aspen Event Planning Services, Inc

question 66

True/False

Aspen Event Planning Services, Inc. records deferred expenses and deferred revenues using 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 December 15, it collected $3,000 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, it had performed approximately 10% of the services for its customer. The adjusting entry on December 31 will include a debit to Service Revenue for $2,700.

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Definitions:

Conditions

Specific circumstances or factors affecting the way in which people live or work, especially with regard to their safety or well-being.

Organizations

Structured groups of people who work together to achieve shared goals or fulfill a specific purpose.

Supervisors

Individuals who have the authority and responsibility to oversee and direct the work of others in a workplace setting.

Adjusting

The process of adapting or changing one’s behavior, thoughts, or attitudes to better suit new conditions or environments.