The Entry to Close the Appropriate Insurance Account at the End

question 192

Multiple Choice

The entry to close the appropriate insurance account at the end of the accounting period is

• A) debit Income Summary; credit Prepaid Insurance
• B) debit Prepaid Insurance; credit Income Summary
• C) debit Insurance Expense; credit Income Summary
• D) debit Income Summary; credit Insurance Expense

---

Definitions:

Barter

is a method of exchange where goods or services are traded directly for other goods or services without the use of money.

Generalized Reciprocity

A form of exchange where goods or services are given with the expectation that the recipient will reciprocate in the future without a specified value or time frame.

Generalized Reciprocity

A type of exchange where goods or services are provided without an immediate or specified return, often found within close relationships or communities.

Close Kin

Family members closely related by blood, typically immediate family such as parents, children, and siblings.