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Jurgen Prothnow Works as a Technical Adviser for High Tech

question 47

Multiple Choice

Jurgen Prothnow works as a technical adviser for High Tech Corp. part of his duties is to train employees. Jurgen has compiled, over the course of many years, an instruction manual. This manual could be used by others in the industry, and Jurgen wants to publish it - and of course derive the profit from its sale. Which of the following is true?


Definitions:

Prepaid Insurance

An asset account representing insurance premiums paid in advance, which are expensed as the insurance coverage pertains to future accounting periods.

Fees Earned

Revenue generated from professional services provided to clients.

Insurance Expense

The cost incurred by a business for obtaining insurance coverage against risks, reflected as a periodical premium payment in financial statements.

Credit

The provision of resources (like money) by one party to another, with the expectation of repayment or return in the future.

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