An Asset Created by Prepayment of an Insurance Expense Is

question 21

Multiple Choice

An asset created by prepayment of an insurance expense is:

• A)Recorded as a debit to Unearned Revenue.
• B)Recorded as a debit to Prepaid Insurance.
• C)Recorded as a credit to Unearned Revenue.
• D)Recorded as a credit to Prepaid Insurance.
• E)Not recorded in the accounting records until the insurance period expires.

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Definitions:

Data Collection

Data collection is the systematic approach to gathering and measuring information from varied sources to get a complete and accurate picture of an area of interest.

Compliance Training

Instruction designed to inform employees of the organization’s regulations, policies, and legal obligations.

Training Programs

Structured educational schemes designed to enhance the skills and knowledge of participants for personal development or occupational proficiency.

Performance Problem

Refers to a gap between actual performance and desired performance in a work environment.