A Company Shows a $600 Balance in Prepaid Insurance in the Unadjusted

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