Data Ltd Uses Accrual Accounting and Its Financial Year Ends

question 2

Short Answer

Data Ltd uses accrual accounting and its financial year ends on 30 June.Expenses paid in advance are treated as assets.On 1 May 2016,Data Ltd pays $480 for a one-year fire insurance policy that expires on 30 April 2017.
-What is the journal entry made by Data Ltd on 1 May 2016?

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Definitions:

SSR

Sum of Squares for Regression, a statistical measurement that represents the variation explained by the independent variables in a regression model.

SSE

Sum of Squared Errors, a measure used in statistics to quantify the discrepancy between the observed and model-predicted values.

Sum Of Squares

In statistics, the sum of squares is a measure used to quantify the variation or dispersion of a set of numbers.

Independent Variables

Variables in an experiment or model that are manipulated or classified by the researcher to observe their effect on the dependent variable.