The Belief in the Permanence of Certain Attributes of Objects

question 37

Multiple Choice

The belief in the permanence of certain attributes of objects or situations in spite of superficial changes is called:

• A)appropriation.
• B)initiation.
• C)affiliation.
• D)conservation.

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Definitions:

Insurance Expense

The cost allocated to a period for holding insurance policies, regarded as a non-operational expense in financial statements.

Prepaid Insurance

An asset account that reflects the amount of insurance premiums that have been paid in advance and are gradually recognized as an expense over the coverage period of the policy.

Adjusting Entry

A journal entry made in accounting records at the end of an accounting period to allocate income and expenditure to the period in which they actually occurred.

Year 1

Refers to the first year of operation for a business or the first year of a specific reporting period.