The Abex Corp

question 80

Multiple Choice

The Abex Corp. spent $10,000 on a one-year insurance policy, on April 1 of Year 1. How much insurance expense should be recognized by Abex in its December 31, Year 1 income statement?

• A) None
• B) 2500
• C) 5000
• D) 7500
• E) 10000

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Definitions:

Auto-

A prefix meaning self or same, used in various medical and scientific terms to indicate self-origin, such as autoimmune, relating to the immune system attacking the body's own tissues.

Dia-

A prefix in medical terms indicating through, between, apart, or across.

Mal-

A prefix in English meaning "bad" or "wrongly."

Micro-

A prefix denoting a factor of one millionth or pertaining to smallness.