Munoz Co Prepays Cash in October for Insurance That Covers Only

question 1

Multiple Choice

Munoz Co. prepays cash in October for insurance that covers only the month of November. Munoz Co. records the expense in October. Which method of accounting is Munoz Co. using?

• A) accrual basis of accounting
• B) cash basis of accounting
• C) hybrid basis of accounting
• D) consolidated basis of accounting

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Definitions:

Shared Environment

The aspects of an individual's environment that are shared with other family members, contributing to similarities between them.

Adoption Studies

Research studies that compare biological and adoptive family members to understand the influence of genetic versus environmental factors on traits or disorders.

Concordance Rates

The probability that two individuals with shared genetics, such as twins, will both exhibit a particular trait or disorder, used in genetics and psychology to study inheritance patterns.

Monozygotic Twins

Identical twins that result from the fertilization of a single egg that then splits into two, sharing 100% of their genetic material.