Eve's Apples Opened Business on January 1, 2013, and Paid

question 115

Multiple Choice

Eve's Apples opened business on January 1, 2013, and paid for two insurance policies effective that date. The liability policy was $36,000 for 18 months, and the crop damage policy was $12,000 for a two-year term. What is the balance in Eve's prepaid insurance as of December 31, 2013?

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

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Definitions:

Program Expenses

Program expenses are costs directly associated with the operations and activities aimed at fulfilling an organization's mission, distinct from administrative or fundraising costs.

Contributed Income

Financial resources received by organizations, especially non-profits, from donations, grants, or philanthropic contributions.

Financial Ratio

A quantifiable metric comparing two relevant numbers from a company's financial statements, used to assess its financial health.

Inputs and Outcomes

The resources invested in a process (inputs) and the results yielded from that process (outcomes), used to evaluate efficiency and effectiveness.