Which of the Following Statements Is False

question 87

Multiple Choice

Which of the following statements is false?

• A)Prepaid insurance is a liability reported on the balance sheet.
• B)Prepaid insurance indicates that a company has already paid cash for insurance coverage that protects the company for some future time period.
• C)Prepaid insurance is a deferred expense.
• D)Prepaid insurance represents a future economic benefit.

---

Definitions:

Proportions

Fractions or percentages that represent part of a whole or a ratio of one quantity to another.

Proportions

Ratios that compare the part of a whole to the whole itself, often expressed in terms of a fraction or percentage.

Chi-squared Goodness-of-fit Test

A statistical test used to determine whether observed frequencies differ significantly from expected frequencies specified by a theoretical distribution.

Rule of Five

An empirical rule suggesting that extreme observations in data, more than five standard deviations from the mean, are rare.