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The Unadjusted Trial Balance Columns of the Work Sheet Show

Question 101

Multiple Choice

The unadjusted trial balance columns of the work sheet show the balance in the Prepaid Insurance account at $2,250. The adjustments columns show that $625 of this insurance was used during the period. Assuming there is no other charges to insurance expense during the year, what amount would be shown as Insurance Expense in the income statement columns?


A) $1,625 debit.
B) $625 credit.
C) $625 debit.
D) $2,250 debit.

Correct Answer:

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