Under the Alternative Method for Recording Prepaid Expenses, Which Is

question 124

Multiple Choice

Under the alternative method for recording prepaid expenses, which is the correct set of journal entries?

• A) \[\begin{array} { | l | l | }
• \hline { \text { Initial Entry } } & { \text { Adjusting Entry } } \\
• \hline \text { Prepaid Insurance } & \text { Cash } \\
• \hline \text { Insurance Expense } & \text { Prepaid Insurance } \\
• \hline
• \end{array}\]
• B) \[\begin{array} { | l | l | }
• \hline { \text { Initial Entry } } & { \text { Adjusting Entry } } \\
• \hline \text { Prepaid Insurance } & \text { Insurance Expense } \\
• \hline \text { Cash } & \text { Prepaid Insurance } \\
• \hline
• \end{array}\]
• C) \[\begin{array} { | l | l | }
• \hline { \text { Initial Entry } } &{ \text { Adjusting Entry } } \\
• \hline \text { Prepaid Insurance } & \text { Prepaid Insurance } \\
• \hline \text { Cash } & \text { Insurance Expense } \\
• \hline
• \end{array}\]
• D) \[\begin{array} { | l | l | }
• \hline{ \text { Initial Entry } } & { \text { Adjusting Entry } } \\
• \hline \text { Insuance Expense } & \text { Prepaid Insuance } \\
• \hline \text { Cash } & \text { Insuranes Expense } \\
• \hline
• \end{array}\]
• E) \[\begin{array} { | l | l | }
• \hline { \text { Initial Entry } } &{ \text { Adjusting Entry } } \\
• \hline \text { Cash } & \text { Prepaid Inswance } \\
• \hline \text { Insuranes Expense } & \text { Insuranes Expense } \\
• \hline
• \end{array}\]

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Definitions:

Partnership

A legally recognized form of business collaboration where multiple individuals share in management and profit distribution.

Constitutional Protection

Safeguards provided by a constitution to protect individuals' rights and freedoms from infringement.

Unreasonable Searches and Seizures

Any search or seizure by law enforcement without a valid warrant, probable cause, or the individual's consent, typically considered a violation of constitutional rights.

Informal Organization

The network of personal and social relationships that spontaneously form within an organization outside of its formal structure.