Data Ltd Uses Accrual Accounting and Its Financial Year Ends

question 50

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 30 June 2016?

---

Definitions:

Clothing

Items worn on the body to protect, cover, or adorn, often reflecting personal style or cultural practices.

Deficiency Needs

pertain to basic requirements for physical and psychological well-being, as identified in Maslow's hierarchy of needs, including safety, love, and self-esteem.

Growth Needs

Psychological desires that drive individuals to achieve personal expansion and progress.

Maslow's Hierarchy

A theory in psychology proposed by Abraham Maslow, structured as a hierarchy of human needs ranging from basic physiological needs to self-actualization, dictating motivational drivers.