Avalon Event Planning Services, Inc. records deferred expenses and deferred revenues using the alternative treatments. It makes adjusting entries as needed to bring its books to the full accrual basis once a year at the end of the year On October 1, it paid $3,600 for insurance for a one-year period. At the end of the year, it will make an adjusting entry that debits Insurance Expense for $1,200.
Indicate whether the statement is true or false
FALSE .Prepaid Expense = $3,600 x 8/12 = $2,400
Business
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Business
A toothbrush that costs ten cents to manufacture may cost a consumer $3.00 to buy. According to critics, this is an example of ________
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Business