Making Insurance Payments in Advance Is an Example Of

question 17

Multiple Choice

Making insurance payments in advance is an example of:

• A)An accrued revenue.
• B)An accrued expense.
• C)An unearned revenue.
• D)A prepaid expense.

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Definitions:

Cash Receipts Journal

A dedicated accounting ledger for documenting all cash inflows.

Purchases Journal

A record that specifically tracks all purchase transactions made by a business, often used in a manual accounting system.

Cash Payments Journal

A special journal used in accounting to record all transactions that involve payments made by a company.

Supplies

Supplies refer to items consumed or used in the day-to-day operations of a business, often not directly linked to the products being sold.