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:

Classical-Conditioning Procedure

A pairing method of learning where two stimuli when frequently associated, lead to a response initially prompted by the second stimulus but subsequently by the first stimulus alone.

Conditioned Stimulus

A formerly neutral signal that, once it is linked with an unconditioned stimulus, ultimately leads to eliciting a conditioned response.

Conditioned Response

A learned response to a previously neutral stimulus that has become associated with an unconditioned stimulus.

Taste Aversion

Taste aversion is a learned response to eating spoiled or toxic food, leading to an aversion to that food in the future.