You Own a Small Business and You Decide to Purchase

question 11

Multiple Choice

You own a small business and you decide to purchase insurance for your business on March 31 that covers a 12-month period beginning the next day.The insurance company requires the annual premium amount upfront.On December 31, what portion of the premium should you expense in your financial statements?

• A)100%
• B)75%
• C)67%
• D)33%

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Definitions:

Sigmund Freud

An Austrian neurologist and the founder of psychoanalysis, a method for treating psychopathology through dialogue between a patient and a psychoanalyst.

Maladaptive Behavior

Actions or tendencies that hinder an individual’s ability to adjust healthily to particular situations.

Insight Therapist

A psychotherapist who focuses on helping clients gain insight into their thoughts, emotions, and behaviors to facilitate change.

Repressed Material

Memories, thoughts, or impulses unconsciously held out of awareness due to their threatening nature.