When an Adjusting Entry Is Made to Record Insurance Expense

question 34

Multiple Choice

When an adjusting entry is made to record insurance expense and reduce the prepaid insurance account, which section of the statement of cash flows is affected?

• A) Cash Flow from Operating Activities
• B) Cash Flow from Investing Activities
• C) Cash Flow from Financing Activities
• D) There is no effect on the statement of cash flows.

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Definitions:

REM Sleep

REM Sleep is a stage of sleep characterized by rapid eye movements, increased brain activity, vivid dreams, and temporary muscle paralysis, playing a critical role in emotional regulation and memory.

Narcolepsy

Narcolepsy is a chronic sleep disorder characterized by overwhelming daytime drowsiness and sudden attacks of sleep.

REM Sleep

A sleep phase characterized by rapid eye movement, during which vivid dreams commonly occur, and is thought to play a role in learning and memory processes.

Sleep Apnea

A serious sleep disorder that occurs when a person's breathing is interrupted during sleep, leading to poor sleep quality and other health issues.