At December 31, 2022, Before Any Year-End Adjustments, TBS Corp

question 47

Multiple Choice

At December 31, 2022, before any year-end adjustments, TBS Corp.'s Insurance Expense account had a balance of $800 and its Prepaid Insurance account had a balance of $3,400.It was determined that $1,650 of the Prepaid Insurance had expired.The adjusted balance for Insurance Expense for the year would be

• A)$2,450.
• B)$1,650.
• C)$1,975.
• D)$ 800.

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Definitions:

Consolidated Bonds Payable

The total amount of bonds owed by both a parent company and its subsidiaries as presented in consolidated financial statements.

Proposal

A plan or suggestion put forward for consideration or discussion, especially in a business or formal context.

Coattail Provision

A feature in shareholders' agreements that obliges minority shareholders to join in the sale of a company if the majority shareholders agree to sell their shares.

Restricted Shares

Shares of stock that are granted to an employee but come with restrictions on sale and transfer until certain conditions are met.