If the Ratio of Insurance Expense to Related Property, Plant

question 61

Multiple Choice

If the ratio of insurance expense to related property, plant, and equipment is higher than expected, which of the following is a plausible explanation?

• A)Too much expired insurance is still included in prepaid insurance.
• B)PP&E insurance expense includes some expenses related to product liability insurance.
• C)Depreciation expense was based on overly short useful lives.
• D)Some routine maintenance on equipment was added to the equipment asset account.

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Definitions:

Genetic Drift

A mechanism of evolution involving random changes in the frequency of alleles within a population over time, not necessarily driven by natural selection.

Gene Flow

The transfer of genetic variation from one population to another, which can lead to changes in the genetic composition of populations.

Sickle-Cell Anemia

A genetic blood disorder causing red blood cells to assume a sickle shape, leading to various health complications.

Hemoglobin

The protein that carries oxygen in red blood cells.