Wells technical institute (wti) provides training to individuals who pay tuition directly to the school. wti also offers training to groups in off-site locations. wti initially records prepaid expenses and unearned revenues in balance sheet accounts. its unadjusted trial balance as of december 31 follows, along with descriptions of items a through h that require adjusting entries on december 31.

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08-06-2022
Business

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Wells technical institute (wti) provides training to individuals who pay tuition directly to the school. wti also offers training to groups in off-site locations. wti initially records prepaid expenses and unearned revenues in balance sheet accounts. its unadjusted trial balance as of december 31 follows, along with descriptions of items a through h that require adjusting entries on december 31.

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chilljain33 chilljain33 · Answer 1 · 2022-06-14T08:47:15+02:00

Wells Technical Institute's method of recording unearned revenues and prepaid expenses into its balance sheet accounts is known as an accrual method of accounting.

What is accrual method?

A method of accounting in which the payments and the receipts for a business are recorded in the books of accounts at the time they are due, but not yet received, is known as the accrual method of accounting.

Hence, the significance of accrual method is given above.

Learn more about accrual method here:

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