Murphy, Inc. paid $9,600 cash for insurance in June that provides coverage for six months, from July through December. How much expense should be recognized in June to be in accordance with generally accepted accounting principles?
A. $1,600 ($9,600 × 1/6 for the month of June)
B. $4,800
C. $9,600
D. No expense should be recognized in June.
Answer: D
You might also like to view...
While using integrated marketing communications, the communications process should start with a(n) ________
A) advertising strategy B) competitive-parity analysis C) long-term public relations plan D) audit of all potential customer touch points E) strategy for implementing a social media presence
Agents can compete with the principal during the course of the agency if the principal agrees
Indicate whether the statement is true or false
Anticipation inventory is ______.
a. inventory held in excess of a firm’s cycle stock b. to avoid expected fall in demand c. also called seasonal inventory d. stock-out avoidance inventory
For estimating NPV, the IRR is the appropriate discount rate to use for an average-risk project
Indicate whether the statement is true or false.