The Adjusting Entry to Account for the Expiration of Prepaid

question 33

Multiple Choice

The adjusting entry to account for the expiration of prepaid insurance consists of

• A) a debit to Insurance Expense and a credit to Prepaid Insurance.
• B) a debit to Insurance Expense and a credit to Accumulated Depreciation.
• C) a debit to Prepaid Insurance and a credit to Accumulated Depreciation.
• D) a debit to Accumulated Depreciation and a credit to Prepaid Insurance.

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Definitions:

Conversion

The process of changing something into a different form or substance, often used in the context of chemical reactions.

Reaction

A process in which substances, the reactants, undergo a transformation to produce new substances, the products.

Cyclohexanone

A cyclic ketone with the formula C6H10O, characterized by a six-member ring structure with a ketone group, used as a solvent and in the production of chemicals.

Coefficient of Correlation

A statistical measure that calculates the strength of the relationship between the relative movements of two variables.