The Premium on a Two-Year Insurance Policy Expiring on June

question 65

Multiple Choice

The premium on a two-year insurance policy expiring on June 30,2015,was paid in total on July 1,2013.The original payment was debited to the insurance expense account.The appropriate journal entry has been recorded on December 31,2013.The balance in the prepaid asset account on December 31,2013,should be

• A) the same as the original payment.
• B) higher than if the original payment had been initially debited to an asset account.
• C) lower than if the original payment had been initially debited to an asset account.
• D) the same as it would have been if the original payment had been initially debited to an asset account.

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Definitions:

Metal Detectors

Devices used to detect the presence of metal nearby, commonly used for security screening and in searches for buried objects.

Crisis Action

Immediate and planned actions taken to respond to an emergent event or situation.

Crisis Assessment

A process used in mental health to evaluate the severity of an individual's psychological distress and the risk of harm to themselves or others.