Use This Information to Answer the Following Question

question 101

Multiple Choice

Use this information to answer the following question. The trial balance for Nowwick Company appears as follows:

-If on December 31,20x5,the insurance still unexpired amounted to $20,the adjusting entry would contain a

• A)debit to Prepaid Insurance for $80.
• B)credit to Prepaid Insurance for $80
• C)debit to Insurance Expense for $20.
• D)credit to Prepaid Insurance for $20.

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Definitions:

Bid-Rigging

A form of fraud where competing parties conspire to determine the winner of a bidding process, undermining the competitiveness of the process.

Collusive Agreement

An arrangement where businesses conspire to fix prices, limit supplies, or divide markets, often to restrict competition.

Auxiliary Mechanism

A support system or process that assists or complements the main system in achieving its objectives.

Second-Price Auction

An auction format in which the winner pays the price offered by the second-highest bidder instead of their own highest bid.