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

question 195

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, $18,500, 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, $18,500; Credit Prepaid Insurance, $18,500.
• C)Debit Prepaid Insurance, $12,500; Credit Insurance Expense, $12,500.
• D)Debit Insurance Expense, $12,500; Credit Prepaid Insurance, $12,500.

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Definitions:

Conglomerate Mergers

The combination of companies operating in unrelated industries into a single corporate structure.

Deregulation

The act of decreasing or completely removing governmental influence in a specific sector, typically implemented to foster increased competition in that sector.

Corporate Bigness

Refers to the size, market share, and influence of large corporations in an economy.

Multinationals

Large corporations that have operations, production, or service facilities in more than one country, often playing a significant role in global trade and economic relations.