On July 1, Hill's Construction Paid Six Months' Insurance in Advance

question 107

Multiple Choice

On July 1, Hill's Construction paid six months' insurance in advance. The journal entry to record this transaction is

• A) Debit Prepaid Insurance; Credit Cash.
• B) Debit Insurance Expense; Credit Cash.
• C) Debit Cash; Credit Prepaid Insurance.
• D) Debit Cash; Credit Insurance Expense.

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Definitions:

Environmental Impact

The effect that human activities have on the environment, including natural resources, wildlife, and ecosystem health.

Environmentally Friendly Products

Goods and services designed to inflect minimal or no harm on the environment, often using sustainable resources, processes, or technologies.

Price Premium

The extra amount consumers are willing to pay for a product or service over its basic cost, often due to perceived quality or brand reputation.

Eco-branding Strategy

A marketing approach focusing on promoting a brand's environmental sustainability and ecological benefits.