Use the Information Below to Answer the Following Questions

question 51

Multiple Choice

Use the information below to answer the following questions:
Data Ltd uses accrual accounting and its financial year ends on 30 June. Expenses paid in advance are treated as assets. On 1 May 2011, Data Ltd pays $480 for a one-year fire insurance policy that expires on 30 April 2012.
-Which of the following will appear on Data Ltd's balance sheet at 30 June 2011?

• A) prepaid insurance $480
• B) prepaid insurance $400
• C) prepaid insurance $80
• D) insurance expense $80.

---

Definitions:

Congress

A national legislative body, particularly in the United States, consisting of two houses: the Senate and the House of Representatives, responsible for making federal laws.

Inherent Powers

Powers that are not explicitly stated but are implied in the constitution, allowing government to perform actions necessary for its functioning.

Legal Authority

The legally sanctioned power given to individuals or entities to make legal decisions, enforce laws, and administer justice.

Executive Agreements

International agreements entered into by the president that do not require Senate approval, often used in foreign policy.