A Continuation Statement

question 31

Multiple Choice

A continuation statement:

• A)can be filed a month before the expiration date.
• B)can be filed within five months before the expiration date.
• C)can be filed within three months before the expiration date.
• D)can be filed within six months before the expiration date.

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Definitions:

Total Assets

Total assets refer to the sum of all current and non-current assets owned by a company, reflecting the total resources available for use.

Total Liabilities

Total liabilities refer to the sum of all financial obligations a company owes to outside parties, including loans, accounts payable, and mortgages.

Prepaid Insurance

An asset account that reflects payments made for insurance services before the coverage period.

Asset Account

A record in the financial statements that shows the value of a company's assets, including current, fixed, tangible, and intangible assets.