Marcy's Event Planning Services Company Records Deferred Expenses and Deferred

question 138

True/False

Marcy's Event Planning Services Company records deferred expenses and deferred revenues using the alternative treatments.The business 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,Marcy's paid $3,600 for insurance for a one-year period.Coverage begins on October 1.At the end of the year,it will make an adjusting entry that debits Insurance Expense for $1,500.

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Definitions:

Conditioned Response

A learned response to a previously neutral stimulus that has become conditioned.

Conditioned Stimulus

An original neutral stimulus that, following its connection with an unconditioned stimulus, starts to evoke a conditioned response.

Unconditioned Stimulus

A stimulus that naturally and automatically triggers a response without prior conditioning.

Unconditioned Response

An automatic and natural response to an unconditioned stimulus, not learned through previous experience, typical in classical conditioning scenarios.