A Business Pays Its Insurance Premium of $2,400 on November

question 83

Multiple Choice

A business pays its insurance premium of $2,400 on November 1 of each year.On January 1 of the new year (after December 31 adjustments) ,the Prepaid insurance account has a debit balance of:

• A) $1,200.
• B) $400.
• C) $2,400.
• D) $2,000.

---

Definitions:

Fluid Volume Excess

A medical condition where there is too much fluid in the body, often leading to swelling, hypertension, and in severe cases, heart failure.

Hypokalemia

A condition characterized by lower-than-normal levels of potassium in the bloodstream.

Mineral Oil Laxatives

A type of laxative made from mineral oil, used to ease bowel movements by coating stool and preventing water from being absorbed by the colon.

Nutrients Absorbed

The process by which the body takes in and utilizes vitamins, minerals, and other nutritional substances.