Which Account Is Debited in the Adjusting Entry to Record

question 78

Multiple Choice

Which account is debited in the adjusting entry to record insurance expired during the current period?

• A)Insurance Payable
• B)Accrued Insurance
• C)Prepaid Insurance
• D)Insurance Expense

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Definitions:

Benchmark

A standard or point of reference against which the performance of securities, investments, or funds can be measured.

FASB

The Financial Accounting Standards Board, an independent organization responsible for establishing accounting and financial reporting standards for companies and non-profit organizations in the United States.

Aspirational Firm

A concept in business and finance referring to a company that sets ambitious goals and seeks to innovate and grow rapidly.

LIFO

Last In, First Out, an accounting method used to value inventory that assumes the most recently produced items are the first to be sold.