Question
At the time a company prepays a cost: it credits an asset account and debits an expense account it debits an asset account to show
At the time a company prepays a cost:
it credits an asset account and debits an expense account
it debits an asset account to show the service or benefit it will receive in the future
it debits an expense account to match the expense against revenues recognized
its credits a liability account to show the obligation to pay for the service in the future
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ANSWER B It debits an asset account to reveal the service or advantage it will receive in the future ...
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Financial Markets and Institutions
Authors: Jeff Madura
12th edition
9781337515535, 1337099740, 1337515531, 978-1337099745
