What Is the Proper Adjusting Entry at June 30, the End

question 136

Multiple Choice

What is the proper adjusting entry at June 30, the end of the fiscal year, based on a prepaid insurance account balance before adjustment, € 20,500, and unexpired amounts per analysis of policies of € 6,000?

• A)Debit Insurance Expense, € 6,000; Credit Prepaid Insurance, € 6,000.
• B)Debit Insurance Expense, € 20,500; Credit Prepaid Insurance, € 20,500.
• C)Debit Prepaid Insurance, € 14,500; Credit Insurance Expense, € 14,500.
• D)Debit Insurance Expense, € 14,500; Credit Prepaid Insurance, € 14,500.

Comprehend the importance and content of a clinical procedures manual within a medical practice.

Explain the supervisory structure and reporting relationships within a medical practice.

Identify best practices in goal-setting for office management.

Understand the processes related to payroll management, including deductions, gross and net earnings.

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Definitions:

Time Value

The idea that money currently in hand is more valuable than the same sum received in the future because of its ability to earn more over time.

Call Option

A financial contract giving the buyer the right, but not the obligation, to purchase a stock or other asset at a specified price within a certain time frame.

Present Value

The current value of a future amount of money or stream of cash flows given a specified rate of return.

Deltas

In options trading, deltas measure the rate of change of the option's price relative to a one-unit change in the price of the underlying asset, indicating how the price of the option is expected to move.