Magna Company Paid $2,400 for a 6-Month Liability Insurance Policy

question 92

Multiple Choice

Magna Company paid $2,400 for a 6-month liability insurance policy. At the time of payment, this transaction should be recorded as

• A) Insurance Expense, $2,400.
• B) Prepaid Insurance, $2,400.
• C) Insurance Expense, $400.
• D) Prepaid Insurance, $400.

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