Sugar City Uses the Purchases Method to Record All Prepayments

question 3

Multiple Choice

Sugar City uses the purchases method to record all prepayments.The City has a 6/30 fiscal year-end.On 12/31/10, the City purchased a three-year insurance policy covering all city owned vehicles accounted acquired by the General Fund to be used in general government activity.Cost of the policy was $360,000.After the 6/30/11 closing entries, the appropriate balance sheet accounts and balances associated with this transaction are in the City's General Fund:

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

Understand the concept and implications of different power bases in social and consumer behavior.

Recognize the influence of reference and aspirational groups on consumer decisions.

Identify strategies used by brands to shift consumer perception and behavior.

Analyze the role of conformity and nonconformity in consumer behavior and group dynamics.

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Definitions:

Finished Goods

Items that are fully manufactured but remain unsold to consumers.

Conversion Costs

Costs associated with converting raw materials into finished products, which typically include both direct labor costs and manufacturing overhead costs.

Factory Overhead Costs

Indirect costs associated with manufacturing, including expenses related to running the factory but not directly traceable to individual products.

Indirect Labor Costs

The expense associated with labor that supports but does not directly contribute to the production or provision of services.