On April 1,2019,the Premium on a One-Year Insurance Policy Was

question 25

Multiple Choice

On April 1,2019,the premium on a one-year insurance policy was purchased for $3,000 cash with the insurance coverage beginning on that date.The books are adjusted only at year-end.Which of the following correctly describes the effect on the financial statements of the December 31,2019 adjusting entry?

• A)Prepaid insurance will decrease $750.
• B)Insurance expense will increase $750.
• C)Insurance expense will increase $2,250.
• D)Prepaid insurance will increase $2,250.

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Definitions:

Body Mass Index (BMI)

A calculation method for determining body fat in adults by using their height and weight, which helps in identifying if an individual is underweight, of normal weight, overweight, or obese.

Sedentary

A lifestyle characterized by a lot of sitting or lying down with very minimal physical activity.

Smoking Status

An individual's current use of tobacco products, often categorized as current smoker, former smoker, or never smoker.

Menopause

The natural cessation of menstruation that typically occurs in women in their late 40s to early 50s, marking the end of reproductive years.