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Explain the risk premiums of stock.
Prepaid Insurance
A current asset account that represents payments made for insurance services that will be consumed in future periods.
Posting Reference
An alphanumeric code or number used in accounting to indicate the ledger account that a journal entry has been posted to.
Journal Entry
A record of a financial transaction in an accounting system, detailing the accounts affected and the amounts debited and credited.
Transferring Debits
The process of moving debit entries from one account to another in accounting, typically to ensure accuracy in financial records.
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