Which Account Is Debited in the Adjusting Entry to Record

question 163

Multiple Choice

Which account is debited in the adjusting entry to record insurance expired during the current period?

• A)Prepaid Insurance
• B)Insurance Expense
• C)Accrued Insurance
• D)Insurance Payable

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Definitions:

Disclosed Principal

A legal relationship in which an agent acts on behalf of a principal, with the third party being aware of the principal’s identity.

Unidentified Principal

A principal in an agency relationship whose identity remains unknown to the third party at the time of the agency transaction.

Commercial Transaction Law

Governs the rights, relations, and conduct of persons and businesses engaged in commerce, merchandising, trade, and sales.

UAE Civil Code

A set of laws that regulate civil transactions within the United Arab Emirates, covering matters such as contracts, personal status, and property.