The Adjusting Entry to Account for the Expiration of Prepaid

question 94

Multiple Choice

The adjusting entry to account for the expiration of prepaid insurance consists of:

• A)a debit to Accumulated Depreciation and a credit to Prepaid Insurance.
• B)a debit to Insurance Expense and a credit to Prepaid Insurance.
• C)a debit to Insurance Expense and a credit to Accumulated Depreciation.
• D)a debit to Prepaid Insurance and a credit to Accumulated Depreciation.

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Definitions:

Automobiles

Motor vehicles equipped with four wheels and an internal combustion engine or electric motor, designed for passenger transportation.

Quantitative Variable

A variable that can take on numeric values, allowing for measurable differences in magnitude or size.

Overall Shape

A descriptive term referring to the general form or contour of a distribution or data set.

Deviations

Variations or departures from a standard or norm.