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- Making insurance payments in advance is an example of: Select one: a. An accrued receivable transaction. b. A prepaid expense transaction. C. An unearned revenue transaction. d. An accrued liability transaction.7. Which of the following accounts is an liability? a. Bank deposit b. Prepaid insurance expense c. Account payable d. Short term investmentWhich of the following statements is false? Multiple Choice Prepaid insurance is a liability reported on the balance sheet. Prepaid insurance represents a future economic benefit. Prepaid insurance indicates that a company has already paid cash for insurance coverage that protects the company for some future time period. Prepaid insurance is a deferred expense.
- 26) Insurance premium paid in advance to insurance company is an example of: a. Accrued revenue b. Accrued expense c. Prepaid expense d. Outstanding expenseWhich of the following is an arrangement by which one party promises to pay a sum of money to policyholder as protection against an adverse or unfavorable occurrence of event? a. Short Term Loans b. Fixed Deposit c. Insurance d. Investment28. Insurance premium paid in advance to insurance company is an example of: a. Prepaid expense b. Outstanding expense c. Accrued revenue d. Accrued expense
- 3- Which of the following is an arrangement by which one party promises to pay a sum of money to policyholder as protection against an adverse or unfavorable occurrence of event? a. Investment b. Fixed Deposit c. Insurance d. Short Term LoansWhat other steps should be taken to make sure that the remaining balance in the prepaid account for insurance expenses is correct?When should a company report the cost of an insurancepolicy as an expense?a. When the company first signs the policy.b. When the company pays for the policy.c. When the company receives the benefits from thepolicy over its period of coverage.d. When the company receives payments from the insurance company for its insurance claims.
- In terms of Business interruption insurance, the gross profit sum insured can be calculated on the following basis: 1 Net profit less standing charges. 2 Turnover plus closing stock, minus opening stock. 3 Net profit plus standing charges. 4 Turnover plus standing charges.Simple interest applies when interest is earned _____________. a. on interest b. in a serious of payments c. to a checking account d. only once before a paymentOn a Closing Disclosure, the method used to compute adjustments for insurance and taxes is known as A reconciliation. B. pro-ration. C D substitution. amortization.