Sugar City Uses the Purchases Method to Record All Prepayments

question 23

Multiple Choice

Sugar City uses the purchases method to record all prepayments.The city has a 6/30 fiscal year-end.On 12/31/14, the city purchased a three-year insurance policy covering all city owned vehicles acquired by the general fund to be used in general government activities.Cost of the policy was $360,000.After the 6/30/15 closing entries, the appropriate balance sheet accounts and balances in the city's general fund associated with this transaction are

• A)Prepaid insurance $300,000; Expenditures $60,000.
• B)Prepaid insurance $300,000; Expenditures $360,000
• C)Prepaid insurance $0; Expenditures $360,000.
• D)Prepaid insurance $0; Expenditures $60,000.

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Definitions:

Identity Statuses

The stages or conditions in the process of developing identity, typically explored in terms of youth and adolescents' exploration and commitment to values and roles.

Identity

The qualities, beliefs, personality traits, appearance, and/or expressions that make a person (self-identity) or group (particular social category or social group).

Excited About Future

Feeling of enthusiasm or eagerness for what is to come or what may happen.

Harsh Verbal Discipline

The use of aggressive or demeaning language by a parent or caretaker towards a child, which can negatively affect the child’s self-esteem and behavior.