If Prepaid Insurance Expires Over Time,this Asset Account Becomes A(n)

question 23

Multiple Choice

If prepaid insurance expires over time,this asset account becomes a(n) :

• A)liability.
• B)another asset.
• C)revenue.
• D)expense.

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Definitions:

Sunk Cost Fallacy

The misconception of valuing a project or investment based on the amount of resources already invested, rather than the prospective future returns.

Argumentum Ad Hominem

A logical fallacy that occurs when an argument is rebutted by attacking the character, motive, or other attribute of the person making the argument, rather than addressing the substance of the argument itself.

Gambler's Fallacy

The erroneous belief that if an event happens more frequently than normal during a past period, it will happen less frequently in the future, or vice versa.

Sunk Cost Fallacy

The misconception that one should continue an endeavor because of previously invested resources (time, money, effort) even if current costs outweigh the benefits.