On July 1, 2011 Albert Company Paid $5,200 for a 1-Year

question 3

Multiple Choice

On July 1, 2011 Albert Company paid $5,200 for a 1-year insurance policy.To record this transaction Albert Company should:

• A)decrease cash and increase insurance expense
• B)decrease cash and increase prepaid insurance
• C)increase accounts payable and increase insurance expense
• D)increase cash and increase prepaid insurance

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Definitions:

Keto Alcohol

A compound containing both a ketone (carbonyl group) and an alcohol (hydroxyl group) functional group.

1-Methylcyclohexane-1,4-diol

A compound featuring a cyclohexane ring with a methyl group and two hydroxyl groups positioned at the 1 and 4 positions.

Benzyl Alcohol

A type of alcohol with the formula C6H5CH2OH, characterized by a benzene ring attached to a CH2OH group.

Methyl Benzoate

An organic compound formed from the esterification of benzoic acid with methanol, characterized by a sweet smell and used in perfumery.