A prepayment that is originally recorded as an asset will be . allocated to future accounting periods equally over the periods receiving the benefit expensed in total at the end of the accounting period allocated to future accounting periods based on the cost of the asset used during the period transferred to a liability account at the end of the accounting period

Allocated to future accounting periods based on the value of the benefit used during the period.

Explanation:

In a pre-payment. you already make the payment for a certain goods or services before you actually use them.

In most cases, the value of prepaid goods or services tend to be decreased as the time goes by , so you need to make adjustment based on the value of the benefit.

For example, Let's say that on June you purchase a prepaid insurance for 1 year, costing you $1,200. At the end of the year, you need to adjust the value and cut it in half since you've been using half of the benefit (6 months between june-December)

being born in poverty would limit the people's chances, opportunities and benefits.

this happen because of several things, such as:

- poor people tend to gain less access to good education and nutrition. this mean that their chance to obtain high paying jobs would also be limited.

- poor people tend to socialize with other poor people while the rich tend to socialize with other rich people. this means that simply throguh their social circle, rich people would have more business opportunities compared to the poor people.

- rich people tend to have more capital in their disposal. this would benefit them in business since it is far easier for them to fund their business operation compared to poor people.