On June 30, a company paid a premium of $2,400 for one year of insurance coverage, which started on July 1. The company has a calendar year-end. Which of the following statements about this situation is correct?
A. Prepaid Insurance of $2,400 will be reported on the balance sheet at December 31.
B. Insurance Expense of $1,200 will be reported on the income statement for the year ending December 31.
C. Prepaid Insurance of $200 will be reported on the balance sheet at December 31.
D. On June 30, Cash would be debited for $2,400.
Answer: B
You might also like to view...
One of the reasons that led to the inconsistency of the large structural macroeconomic models was
A. that endogenous variables such as foreign output were treated as exogenous. B. that all equations were estimated together to test their interrelations with one another. C. that individual equations were estimated in isolation with one another. D. that exogenous variables such as level of technology were treated as endogenous.
The term used to describe the overall impression you continue to build throughout your career is your "professional ________."
A) ?communication B) ?brand C) ?resume D) ?style
If you receive $15,000 today and can invest it at a 4.25% annual rate compounded continuously, what will be your ending value after 20 years?
A. $41,060.80 B. $43,517.43 C. $35,094.70 D. $28,426.71 E. $36,849.44
An asymmetry exists whenever all participants in a market have equivalent resources
Indicate whether the statement is true or false