If Insurance Coverage for the Next Two Years Is Paid

question 44

True/False

If insurance coverage for the next two years is paid for in advance, the amount of the payment is debited to an asset account called Prepaid Insurance.

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Definitions:

Posted Twice

Accidentally recording a financial transaction or entry in the accounting records more than once, which can lead to discrepancies and require correction.

Trial Balance

A bookkeeping worksheet in which the balances of all ledgers are compiled into debit and credit columns to verify that the total debits equal total credits.

Compound Journal Entry

A compound journal entry is an accounting entry which involves more than two accounts, recording multiple debits and/or credits in a single transaction.

Affects

Influences or changes caused by one factor on another within a business or system.