On January 1, 2013, Prepaid Insurance Had a Balance of $6,700

question 85

Multiple Choice

On January 1, 2013, Prepaid Insurance had a balance of $6,700 and on December 31, 2013, a balance of $8,320. The income statement for the year reported Insurance Expense of $49,310. Payments for insurance during the year amounted to:

• A) $49,310
• B) $47,690
• C) $50,930
• D) $57,630

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Definitions:

Preferred Alternative

The most favorable option or choice among a set of possibilities, especially in the context of decision making or policy formulation.

Opportunity Cost

The cost of forgoing the next best alternative when making a decision.

Playing Golf

An outdoor game in which players use clubs to hit a small ball into a series of holes on a course in as few strokes as possible.

Sunny Days

Days characterized by sunshine, with minimal to no cloud cover, often associated with good weather.