If Insurance Expense Was $7,100, and There Was a Decrease

question 92

Multiple Choice

If Insurance Expense was $7,100, and there was a decrease in Prepaid Insurance of $4,700, what would be the cash amount paid for Insurance?

• A) $2,400
• B) $11,800
• C) $7,100
• D) $4,700

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Definitions:

Presumed Damages

Damages assumed by law to have occurred from a wrongful act, without the need for proof of loss or injury.

Actual Injury

A tangible harm or damage that an individual suffers, which can be physical or financial in nature.

Absolute Privilege

A complete defense in defamation cases, where certain acts cannot be sued for defamation irrespective of the intent or truthfulness, typically seen in parliamentary and judicial proceedings.

Defamatory Statement

A false communication that injures a person's reputation, exposing them to public contempt, ridicule, aversion, or disgrace.