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.

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Definitions:

Critical Period

A specific time in an organism's development when it is particularly sensitive to certain environmental stimuli, and the absence of these stimuli may lead to irreversible consequences.

Language Acquisition

The process by which humans acquire the capacity to perceive, produce, and understand language, usually occurring in early childhood.

Nuclear Families

A family group consisting of two parents and their children (biological or adopted).

Extended Families

A family unit that extends beyond the nuclear family to include other relatives such as grandparents, aunts, uncles, and cousins.