题目内容
Prepaid insurance is an asset account, and hence it appears on the balance sheet.
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The depreciation method that allocates an equal amount of depreciation each year is called the straight-line method.
In the case of a prepaid expense, the adjusting entry required at the end of a period will consist of a debit to the Prepaid Expense account. Assume the prepaid expense was initially recorded as an asset.
In the case of unearned revenue, the cash is received first, and the revenue is earned later.
In the case of unearned revenue, the adjusting entry at the end of the period includes a credit to Service Revenue. Assume the unearned revenue is initially recorded as a liability.
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