An Asset Created by Prepayment of an Insurance Premium Is

question 106

Multiple Choice

An asset created by prepayment of an insurance premium is:

• A) Recorded as a credit to Prepaid Insurance.
• B) Recorded as a credit to Unearned Revenue.
• C) Recorded as a debit to Prepaid Insurance.
• D) Not recorded in the accounting records until the insurance period expires.
• E) Recorded as a debit to Unearned Revenue.

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Definitions:

Muscle Cells

Specialized cells that make up muscle tissue, capable of contracting and relaxing to produce movement.

Uterus

A hollow, pear-shaped organ in a female's lower abdomen where offspring are conceived and in which they gestate before birth; the womb.

Menorrhagia

Excessive or prolonged menstrual bleeding at regular menstrual cycle intervals.

Cystocele

A condition wherein the bladder bulges into the vaginal wall due to weakening of the pelvic floor muscles.