A Balance Sheet Reports What an Individual or Family Owns

question 39

True/False

A balance sheet reports what an individual or family owns and owes.

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Definitions:

Decrease Assets

A reduction in the value or quantity of the assets owned by a company or individual.

Prepaid Insurance Account

An asset account on the balance sheet representing insurance premiums that have been paid in advance and are gradually expensed over the coverage period.

Premium

An amount paid in excess of the nominal or face value of something, often associated with insurance policies or bonds.

Adjusting Entry

An accounting entry made at the end of a period to assign revenues to the period in which they are earned and expenses to the period in which they occur.