For a Drug to Be Classified as OTC, It Must

question 20

True/False

For a drug to be classified as OTC, it must be safe for use when the pharmacist suggests its use.

---

Definitions:

Insurance Expense

The cost recognized in the accounting period related to the premiums paid for insurance policies.

Retained Earnings

Profits that a company keeps after dividends are paid to shareholders, used for reinvestment in the business or to pay off debt.

Closing Entry

A closing entry is an accounting procedure used at the end of an accounting period to transfer the balances from temporary accounts to permanent ones, thus preparing the accounts for the next period.

Prepaid Insurance

An asset account that reflects insurance payments that are made in advance for future insurance coverage periods.