On January 1, a company purchased a five-year insurance policy for $1,800 with coverage starting immediately. If the purchase was recorded in the Prepaid Insurance account, and the company records adjustments only at year-end, the adjusting entry at the end of the first year is:
A. Debit Prepaid Insurance, $1,440; credit Insurance Expense, $1,440.
B. Debit Prepaid Insurance, $1,800; credit Cash, $1,800.
C. Debit Insurance Expense, $360; credit Prepaid Insurance, $1,440.
D. Debit Prepaid Insurance, $360; credit Insurance Expense, $360.
E. Debit Insurance Expense, $360; credit Prepaid Insurance, $360.
Answer: E
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A. external audit B. portfolio analysis C. balanced scorecard D. stakeholder analysis
Which of the following are the most visible, but often not decipherable, elements of organizational culture?
A. assumptions B. artifacts and creations C. espoused values D. enacted values
Answer the following statements true (T) or false (F)
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Hal promises not to foreclose on a mortgage that he holds on an office complex that Christopher owns. In reliance on this promise, Christopher spends $200,000 to remodel the complex. Which of the following is correct with regard to Hal's promise?
a. Hal's promise not to foreclose is unsupported by consideration. b. Hal's promise is noncontractual. c. Hal's promise may be enforced against him based upon the doctrine of promissory estoppel. d. All of these.