Aspen Event Planning Services Company Records Deferred Expenses and Deferred

question 16

True/False

Aspen Event Planning Services Company 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 $2,000 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 $1,800.

---

Definitions:

Intuitions

The ability to understand something instinctively, without the need for conscious reasoning.

Framing

involves presenting or structuring information and messages in a way that influences perception and decisions.

Belief Perseverance Phenomenon

The psychological phenomenon where individuals maintain their beliefs despite encountering contradicting evidence or information.

Confirmation Bias

The proclivity to pursue, interpret, be inclined towards, and remember evidence that verifies one's antecedent beliefs or hypotheses.