Assume Minor Company Recorded the Following Adjusting Entry at Year-End

question 118

Multiple Choice

Assume Minor Company recorded the following adjusting entry at year-end: $$\begin{array} { | c | r | r | } \hline \text { Dr Insurance expense } & \$ 800 & \\\hline \text { Cr Prepaid insurance } & & \$ 800 \\\hline\end{array}$$ If the beginning balance in prepaid insurance was $700 and $1,500 was paid for an insurance premium during the year, the ending balance in the prepaid insurance account (after the above adjusting entry) would be which of the following?

• A) $100 debit.
• B) $1,400 debit.
• C) $1,500 debit.
• D) $2,200 debit.

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Definitions:

Money

A medium of exchange in the form of coins and banknotes; used to facilitate transactions for goods and services.

Paired Comparison Method

A technique used in performance appraisal where employees are evaluated by comparing them with each other in pairs.

Performance Appraisal

An ongoing process whereby an employer evaluates an employee's job performance and productivity in relation to pre-established criteria and organizational objectives.

Win-Lose

A competitive situation or negotiation where one party's gain is directly proportional to another party's loss.