Indicate If the Following Transactions Adjust a Prepaid Expense (PE)

question 170

Essay

Indicate if the following transactions adjust a Prepaid Expense (PE), an Accrued Expense (AE), an Unearned Revenue (UR), or an Accrued Revenue (AR):
_____ 1. Paid the yearly insurance policy.
_____ 2. Received payment for a yearly magazine subscription.
_____ 3. Services provided by an accountant that have not yet been billed or recorded.
_____ 4. Received the telephone bill which will be paid next month.
_____ 5. Received payment for computer consulting services which will be performed next year

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Definitions:

Next Day Off

The following day when an individual is scheduled to be free from work or obligations.

Illegal

Activities or actions that are prohibited by law and subject to criminal penalties or civil remedies.

Disputed Debt

A debt that is not agreed upon by the debtor and creditor, often leading to legal action or negotiation for resolution.

Illusory Promise

An agreement that appears to be a contract but lacks the necessary elements to bind the parties, often due to vague or unenforceable terms.