Which of the Following Accounts Is Adjusted with a Credit

question 48

Multiple Choice

Which of the following accounts is adjusted with a credit for the amount of expired insurance at the end of an accounting cycle?

• A) Insurance Expense account
• B) Insurance Payable account
• C) Prepaid Insurance account
• D) Insurance Receivable account

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Definitions:

Break-Even Sales

The amount of revenue from sales that equals the sum of the fixed and variable costs of production, resulting in zero net profit or loss.

Fixed Costs

Expenses that do not change with the level of production or sales activities within a certain range.

Variable Cost

Costs that vary directly with the level of production or volume of goods and services produced.

Sales Mix

Sales mix is the proportion of different products or services that a company sells, impacting its overall profitability and strategic market positioning.