If Insurance Coverage for the Next Two Years Is Paid

question 44

True/False

If insurance coverage for the next two years is paid for in advance, the amount of the payment is debited to an asset account called Prepaid Insurance.

---

Definitions:

Pharyngitis

Inflammation of the back of the throat, known as the pharynx, typically resulting in a sore throat and difficulty swallowing.

Acute Bronchitis

Inflammation of the bronchi in the lungs; often caused by a viral or bacterial infection.

Pulmonary Capillaries

Tiny blood vessels surrounding alveoli in the lungs where Gas exchange of oxygen and carbon dioxide occurs.

Partial Pressure

The pressure a single gas in a mixture contributes to the total pressure, based on its proportion in the mixture.