To decrease prepaid insurance and record insurance expense for insurance that has expired during the period, the following entry should be made. Select one: O a. No entry needed O b. Debit Cash and Credit Prepaid Insurance O . Debit Insurance Expense and Credit Prepaid Insurance O d. Debit Prepaid Insurance and Credit Cash

To decrease prepaid insurance and record insurance expense for insurance that has expired during the period, the following entry should be made. Select one: O a. No entry needed O b. Debit Cash and Credit Prepaid Insurance O . Debit Insurance Expense and Credit Prepaid Insurance O d. Debit Prepaid Insurance and Credit Cash

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter4: The Adjustment Process

Section: Chapter Questions

Problem 4PA: Identify which type of adjustment is associated with this account, and what is the other account in...

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What type of entry will decrease the normal balance of the general ledger accounts prepaid insurance. Prepaid expenses and insurance?
The entry to close the appropriate insurance account at the end of the accounting period is a. debit Owner’s Capital; credit Prepaid Insurance b. debit Prepaid Insurance; credit Owner’s Capital c. debit Insurance Expense; credit Owner’s Capital d. debit Owner’s Capital; credit Insurance Expense
explain the impact on the balance sheet and income statement, specifying which accounts are affected and whether the balance is over or understated, if adjustments to recognize prepaid insurance as being expired and unearned revenue as being earned, are not recorded.
Please do not give solution in image format thanku TRUE or FALSE: Incurred but not reported (IBNR) is a type of reserve account used in the insurance industry as the provision for claims that have taken place but have not yet been reported to an insurer.
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Which of the following statements is false? Adjusting entries are necessary because timing differences exist between when a revenue or expense is recognized and cash is received or paid. Adjusting entries always affect at least one revenue or expense account and one asset or liability account. The cash account will always be affected by adjusting journal entries. Adjusting entries can be classified as either accruals or deferrals.
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