If the Prepaid Insurance Account Had an Unadjusted Normal Balance

question 67

Multiple Choice

If the Prepaid Insurance account had an unadjusted normal balance of $3,400, and an adjustment was made crediting the account for $800, then the account would appear on the work sheet as a(n)

• A)$2,600 debit balance in the Balance Sheet columns.
• B)$800 credit balance in the Income Statement columns.
• C)$2,600 credit balance in the Adjusted Trial Balance columns.
• D)$800 credit balance in the Balance Sheet columns.
• E)$2,600 debit balance in the Income Statement columns.

---

Definitions:

Carbon Dioxide

An odorless, colorless gas that comes from the combustion of carbon and organics, plus through respiration, and is captured by plants in their photosynthesis process.

Ice Cores

Cylindrical samples taken from ice sheets or glaciers, used in climate research to analyze past atmospheric and environmental conditions.

Theory of Atoms

A scientific theory that matter is composed of discrete units called atoms, which are the basic building blocks of chemical substances.

Law of Definite Proportions

A chemical law stating that a compound always contains exactly the same proportion of elements by mass.