Multiple Choice
A company shows a $600 balance in prepaid insurance in the Unadjusted Trial Balance columns of the work sheet.The Adjustments columns show expired insurance of $200.This adjusting entry results in:
A) $200 less in net income.
B) $200 more in net income.
C) $200 difference between the debit and credit columns of the unadjusted trial balance.
D) $200 of prepaid insurance.
E) An error in the financial statements.
Correct Answer:
Verified
Correct Answer:
Verified
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