Crystal Is Extremely Anxious About Germs on Public Door Handles

question 9

True/False

Crystal is extremely anxious about germs on public door handles, railings, and elevator buttons. Along with constantly thinking about germs, Crystal feels compelled to repeatedly wash her hands to the point that her skin is cracked and raw. Crystal probably has obsessive-compulsive disorder.

---

Definitions:

Prepaid Expenses

Costs paid for in advance of their use or consumption, recorded as assets on a balance sheet and gradually expensed over the period of use or benefit.

Direct Method

A way of preparing the cash flow statement where actual cash flows from operating activities are listed directly.

Administrative Expenses

Costs related to the general administration of a business, such as salaries of office staff, rent, and utilities.

Cash Basis

A method in accounting where revenues and expenses are recorded only when cash is received or paid out, respectively.