The Alternative Method of Accounting for Prepayments

question 85

Multiple Choice

The alternative method of accounting for prepayments

• A)Initially records all prepaid expenses with debits to expense accounts.
• B)Initially records all prepaid expenses with credits to expense accounts.
• C)Requires an adjusting entry because expenses are understated.
• D)Requires an adjusting entry if the prepaid is consumed during the period.
• E)Requires an adjusting entry because net income is understated.

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Definitions:

Data Structure

A data structure is a particular way of organizing and storing data in a computer so that it can be used efficiently.

Collection

In programming, a collection is an object that groups multiple elements into a single unit. Collections are used to store, retrieve, manipulate, and communicate aggregate data.

Collection< T > Interface

An interface in Java that provides a generic structure to store and manipulate a group of objects of a specific type.

Methods

Functions defined inside classes in object-oriented programming languages, which can perform operations or actions.