Multiple Choice
On March 1, 20X1, the premium on a two-year insurance policy on equipment was paid amounting to $1,800. At the end of 20X1 (end of the accounting period) , the financial statements for 20X1, would report which of the following?
A) Insurance expense, $0; Prepaid insurance $1,800.
B) Insurance expense, $750; Prepaid insurance $1,050.
C) Insurance expense, $900; Prepaid insurance $900.
D) Insurance expense, $1,800; Prepaid insurance $0.
Correct Answer:
Verified
Correct Answer:
Verified
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