An Asset Created by Prepayment of an Insurance Expense Is

question 21

Multiple Choice

An asset created by prepayment of an insurance expense is:

• A)Recorded as a debit to Unearned Revenue.
• B)Recorded as a debit to Prepaid Insurance.
• C)Recorded as a credit to Unearned Revenue.
• D)Recorded as a credit to Prepaid Insurance.
• E)Not recorded in the accounting records until the insurance period expires.

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Definitions:

Societal Pressures

The force exerted by society on individuals to conform to expected norms and behaviors.

Explanations

Detailed accounts or statements that clarify, justify, or make a phenomenon understandable, often used to communicate complex ideas.

Organizational Tensions

Refers to conflicts or contradictions within an organization that stem from differing goals, values, or interests among its members or units.

Capricious

Given to sudden and unaccountable changes of mood or behavior.