What Is the Proper Adjusting Entry at December 31, the End

question 117

Multiple Choice

What is the proper adjusting entry at December 31, the end of the accounting period, if the balance in the prepaid insurance account is $7,750 before adjustment, and the unexpired amount per analysis of policies is, $3,250?

• A) Debit Insurance Expense, $3,250; credit Prepaid Insurance, $3,250.
• B) Debit Insurance Expense, $4,500; credit Prepaid Insurance, $4,500.
• C) Debit Prepaid Insurance, $4,500; credit Insurance Expense, $4,500.
• D) Debit Insurance Expense, $7,750; credit Prepaid Insurance, $7,750.
• E) Debit Cash, $7,750; Credit Prepaid Insurance, $7,750.

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Definitions:

Big Data

Extremely large data sets that may be analyzed computationally to reveal patterns, trends, and associations, especially relating to human behavior and interactions.

Analytics

Finding meaningful patterns in large datasets.

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A significant choice that has substantial consequences on an individual's life or an organization's direction.

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