Prepaid Insurance Shows a Beginning Balance of $500 and an Ending

question 80

Multiple Choice

Prepaid insurance shows a beginning balance of $500 and an ending balance of $2,800. The insurance expense account was debited during the adjusting process for $1,800. How much cash was spent for insurance?

• A)$1,500
• B)$4,100
• C)$1,000
• D)$3,300

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Definitions:

Socialist Country

A nation whose government practices socialism, aiming for collective or governmental ownership and administration of the production and distribution of goods.

Redistribution of Income

Government policies or mechanisms aimed at adjusting the distribution of income among a population to achieve social or economic objectives.

Wealthy Classes

Social groups consisting of individuals or families that possess significantly higher amounts of capital, assets, or wealth compared to the average population.

Central Planning Board

A government body responsible for determining the allocation of resources and directing economic activity in a centrally planned economy.