On 1 July 2018 Tandem Bicycles Paid $4 800, Representing

question 5

Multiple Choice

On 1 July 2018 Tandem Bicycles paid $4 800, representing a two-year insurance premium. The $4 800 was initially recorded in the Insurance expense account. After adjustment at 31 December 2018, the close of the annual accounting period:

• A) Insurance expense in the income statement is $2400 and Prepaid Insurance in the balance sheet is $2400.
• B) Insurance expense in the income statement is $3600 and Prepaid Insurance in the balance sheet is $0.
• C) Insurance expense in the income statement is $3600 and Prepaid Insurance in the balance sheet is $1200.
• D) Insurance expense in the income statement is $1200 and Prepaid Insurance in the balance sheet is $3600.

Understand historical patterns and consequences of urbanization and suburbanization in the U.S.

Recognize the causes and effects of economic recessions and depressions in U.S. history.

Identify the impact of governmental policies on U.S. economic development from the 20th century to the present.

Distinguish between periods of economic boom and bust in the U.S. history.

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Definitions:

Units

Basic measurement or quantity of a product, used to track inventory, production, and sales in various contexts.

Total Revenue

The entire amount of income received by a firm from selling its goods or services before any expenses are deducted.

Total Cost

The sum of fixed and variable costs incurred by a firm in producing and offering a product or service for sale.

Fixed Cost

Costs that do not change with the level of output or sales, such as rent, salaries, and insurance premiums.