A Company Shows an $800 Balance in Prepaid Insurance in the Unadjusted

question 100

Multiple Choice

A company shows an $800 balance in Prepaid Insurance in the Unadjusted Trial Balance columns of the work sheet.The Adjustments columns show expired insurance of $600.This adjusting entry results in:

• A) $600 less net income.
• B) $600 more net income.
• C) $200 difference between the debit and credit columns of the unadjusted trial balance.
• D) $400 in the Income Statement Debit column on the work sheet.
• E) $400 in the Balance Sheet Credit column on the work sheet.

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Definitions:

Social Dilemma

A situation in which individual decisions lead to outcomes that might be good for the individual but detrimental to the group.

Indirect Pressure

Influences or suggestions made in a subtle way to sway someone's decision or behavior without direct command.

Conformity

The process of aligning one's attitudes, beliefs, and actions with the norms of a group or the expectations of society.

Compliance

The act of conforming, submitting, or adapting one's behavior to match with demands, requests, or regulations from others, often used in a legal or regulatory context.