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:

Vitamins

Organic compounds that are necessary in small amounts for various bodily functions and must be obtained from the diet since they cannot be synthesized by the body.

Macronutrient

Nutrients required in large amounts by living organisms, including proteins, carbohydrates, and fats.

Chlorophyll

A group of green pigments found in the chloroplasts of plants, algae, and some bacteria that absorb light to provide energy for photosynthesis.

Carbohydrate Metabolism

Biochemical processes responsible for the breakdown and synthesis of carbohydrates in living organisms, converting food into energy.