On April 1, a Company Paid the $1,350 Premium on a Three-Year

question 69

Multiple Choice

On April 1, a company paid the $1,350 premium on a three-year insurance policy with benefits beginning on that date. What will be the insurance expense on the annual income statement for the year ended December 31?

• A) $1,350.00.
• B) $450.00.
• C) $1,012.50.
• D) $337.50.
• E) $37.50.

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Definitions:

Skill

A specific ability or expertise that allows an individual to perform a particular task or activity effectively.

Employers

Individuals or organizations that hire people to perform tasks or services in exchange for compensation.

Employee Rights

The legal and ethical entitlements individuals have as employees in the workplace, covering aspects like fair pay, safety, and freedom from discrimination.

Contemporary Managers

Modern-day managers who use up-to-date practices and technologies to plan, organize, lead, and control the operations of an organization.