What Is the Proper Adjusting Entry at December 31, the End

question 117

Multiple Choice

What is the proper adjusting entry at December 31, the end of the accounting period, if the balance in the prepaid insurance account is $7,750 before adjustment, and the unexpired amount per analysis of policies is, $3,250?

• A) Debit Insurance Expense, $3,250; credit Prepaid Insurance, $3,250.
• B) Debit Insurance Expense, $4,500; credit Prepaid Insurance, $4,500.
• C) Debit Prepaid Insurance, $4,500; credit Insurance Expense, $4,500.
• D) Debit Insurance Expense, $7,750; credit Prepaid Insurance, $7,750.
• E) Debit Cash, $7,750; Credit Prepaid Insurance, $7,750.

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Definitions:

Link Instance Variables

Refers to variables within a class instance that refer to other objects, establishing a link between the class and the objects it contains or is associated with.

Data Items

Refers to individual pieces of data or information that are managed or processed by a software program.

References

Variables that hold the memory address of another variable rather than holding the data directly, typically used in languages like C++.

Doubly Linked List

A data structure consisting of nodes where each node has references both to the next node and the previous node in the sequence.