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:

Consistent Behavior

A pattern of actions or responses that remains uniform over time in a particular individual or situation.

Attribution

The process of explaining one's own behavior and the behavior of others.

Assigning Causes

The process of attributing reasons or explanations to events, actions, or outcomes, often to understand or predict behavior.

Cognitive Dissonance

A state of mental discomfort experienced by an individual who holds two or more contradictory beliefs, ideas, or values at the same time.