The Adjusting Entry to Account for the Expiration of Prepaid

question 33

Multiple Choice

The adjusting entry to account for the expiration of prepaid insurance consists of

• A) a debit to Insurance Expense and a credit to Prepaid Insurance.
• B) a debit to Insurance Expense and a credit to Accumulated Depreciation.
• C) a debit to Prepaid Insurance and a credit to Accumulated Depreciation.
• D) a debit to Accumulated Depreciation and a credit to Prepaid Insurance.

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Definitions:

Labor

Human effort, both physical and mental, used in the production of goods and services.

Output

The total amount of goods or services produced by a firm, an industry, or an economy, often measured within a specific time period.

Production Function

An equation or graph that indicates the maximum output that a firm can produce with a given set of inputs, such as labor and capital, under current technology.

Production Function

A mathematical relationship expressing the maximum output that can be produced from a given set of inputs.