On December 1, 2020, Flynn Consulting Paid $ 27,000 for a Three-Year

question 14

Multiple Choice

On December 1, 2020, Flynn Consulting paid $ 27,000 for a three-year insurance policy (December 1, 2020 to November 30, 2023) and debited the entire amount to Prepaid Insurance. The December 31, 2020, required adjusting entry in connection with this policy would be

• A) debit Prepaid Insurance and credit Insurance Expense $ 750.
• B) debit Insurance Expense and credit Prepaid Insurance $ 750.
• C) debit Insurance Expense and credit Prepaid Insurance $ 26,250.
• D) debit Prepaid Insurance and credit Insurance Expense $ 26,250.

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Definitions:

Longitudinal Study

A research method that involves observing and collecting data from the same subjects repeatedly over a period of time to examine long-term effects or trends.

Anorexia

An eating disorder characterized by an abnormally low body weight, intense fear of gaining weight, and a distorted perception of body weight or shape.

Bulimia

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The complete set of DNA, including all of its genes, in an organism, providing the biological instructions it needs to grow, develop, and function.