Which of the Following Is True Regarding the Adjusting Entry

question 95

Multiple Choice

Which of the following is true regarding the adjusting entry for prepaid insurance?

• A) A liability is recorded.
• B) Prior to adjustment, expenses are overstated and assets are understated.
• C) The adjusting entry results in a debit to an expense account and a credit to an asset account.
• D) None of these answer choices are correct.

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Definitions:

Maslow's Concept

Refers to Maslow's hierarchy of needs, a theory in psychology proposed by Abraham Maslow in 1943, which posits that people are motivated by five basic categories of needs: physiological, safety, love and belonging, esteem, and self-actualization.

Humanistic Approach

The Humanistic Approach in psychology emphasizes individual potential and stresses the importance of growth and self-actualization.

Subjective Nature

The characteristic of being grounded in or swayed by individual emotions, preferences, or viewpoints.

Self-concept

An individual's perception of themselves, including beliefs, feelings, and thoughts about one's abilities, appearance, and values.