Multiple Choice
On April 1, Smart, Inc.paid $7,200 for an insurance premium on a three-year insurance policy.How does this transaction affect Smart's accounts?
A) Increase insurance expense and decrease cash by $7,200 each
B) Increase prepaid insurance and decrease cash by $7,200 each
C) Increase unearned insurance and decrease cash by $7,200 each
D) Increase prepaid insurance and decrease retained earnings by $7,200 each
Correct Answer:
Verified
Correct Answer:
Verified
Q17: In August, Falcon Inc.received cash in advance
Q18: X&Y Co.received $4,000 in payments from clients
Q19: When cash is paid to suppliers on
Q20: Which of the following assets never loses
Q23: Identify the type of adjustment necessary
Q24: The liabilities that are due to be
Q25: Which of the following should be deducted
Q26: Which of the following accounts would require
Q27: Describe the end-of-the-period adjustment process.Why is it
Q166: Accrued expenses are ordinarily reported on the