Eve's Apples Opened Business on January 1, 2009, and Paid

question 84

Multiple Choice

Eve's Apples opened business on January 1, 2009, and paid for two insurance policies effective that date. The liability policy was $36,000 for eighteen-months, and the crop damage policy was $12,000 for a two-year term. What was the balance in Eve's prepaid insurance as of December 31, 2009?

• A)$ 9,000.
• B)$18,000.
• C)$30,000.
• D)$48,000.

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Definitions:

Attitudes

Attitudes are psychological tendencies expressed by evaluating entities with some degree of favor or disfavor.

Attribution

The process by which individuals explain the causes of behavior and events, often as either internal dispositions or external situations.

Cognitive Dissonance

The psychological discomfort experienced when holding two or more conflicting beliefs, ideas, or values.

Fundamental Attribution Error

A cognitive bias that causes people to overemphasize personal characteristics and ignore situational factors in judging others' behavior.