PROVIDE EXAMPLES FOR BOTH QUESTIONS IF NECESSARY

3. What is the deferral adjustment associated with deferred revenue? a. Dr. Deferred Revenue (liability - BS), Cr. Revenue (revenue IS)

4. What is the deferral adjustment associated with a prepaid asset? a. Dr. Expense (expense - IS), Cr. Prepaid Asset (asset BS) b. Given a series of information, calculate the amount of expense associated with the deferral adjustment of a prepaid asset.