Associated Services Company Paid Twelve Months' Insurance in Advance Totaling

question 129

Multiple Choice

Associated Services Company paid twelve months' insurance in advance totaling $9,000. At the end of the first month, the adjusting entry would include a:

• A)debit to Prepaid Insurance for $8,250.
• B)debit to Prepaid Insurance for $750.
• C)debit to Insurance Expense for $8,250.
• D)debit to Insurance Expense for $750.

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Definitions:

Simple Reflex Action

An automatic, involuntary physiological response to a specific stimulus that does not involve conscious thought.

Body Contact

Physical interaction between individuals, which can range from casual touches to more intimate or aggressive forms of contact.

Harmful

Causing or capable of causing damage or injury.

Integumentary System

The organ system comprising the skin and its appendages, acting as a barrier to protect the body from the external environment.