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Hour Place Clock Repair Paid $1,800 Cash in Advance for a One

Question 52

Multiple Choice

Hour Place Clock Repair paid $1,800 cash in advance for a one year insurance policy.According to the matching principle,if 4 months of the policy has expired by the end of the current fiscal year,how much should Hour Place Clock Repair report as Insurance Expense on the Income Statement?


A) $0
B) $600
C) $1,200
D) $1,800

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