An Asset Created by Prepayment of an Expense Is

question 78

Multiple Choice

An asset created by prepayment of an expense is:

• A) Recorded as a debit to an unearned revenue account.
• B) Recorded as a debit to a prepaid expense account.
• C) Recorded as a credit to an unearned revenue account.
• D) Recorded as a credit to a prepaid expense account.
• E) Not recorded in the accounting records until the earnings process is complete.

---

Definitions:

Wage Difference

Wage difference is the variance in pay for different jobs or employees, often influenced by factors such as skill level, industry demand, and geographic location.

White Women

Refers generally to females of European descent or those identified through certain physical characteristics typically associated with Caucasians.

White Men

A demographic group characterized by male individuals of European descent.

Trade Flows

The movement of goods and services across borders, reflecting the import and export activities between countries.