You Own a Small Business and You Decide to Purchase

question 11

Multiple Choice

You own a small business and you decide to purchase insurance for your business on March 31 that covers a 12-month period beginning the next day.The insurance company requires the annual premium amount upfront.On December 31, what portion of the premium should you expense in your financial statements?

• A)100%
• B)75%
• C)67%
• D)33%

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Definitions:

Native Americans

Indigenous peoples of the United States, including various tribes, communities, and ethnic groups that were present in the territory before European colonization.

Renting Homes

The process of paying a landlord for the use of a residence over a specified period, without obtaining ownership.

Income

Income is the monetary payment received by an individual or household for work or through investments, pensions, or other sources, which is used for daily living expenses and savings.

Black and Latino Families

Households or familial groups that identify as part of the Black or Latino/Hispanic communities, focusing on their cultural, social, or economic aspects.