12. Which of the following events would not require a journal entry? a Purchase of a one-year insurance policy? b Agreement to perform a service at a future date. c Performance of a service agreed to be paid on a later date. d Payment for a service performed previously.

12. Which of the following events would not require a journal entry? a Purchase of a one-year insurance policy? b Agreement to perform a service at a future date. c Performance of a service agreed to be paid on a later date. d Payment for a service performed previously.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Which of the following is NOT computed by an Acturay on behlaf of a firm Select one: a. Total sales…

A: Every business has to face certain risks and its assesment is an important part of the management…

Q: A man applied for a Ps. 20,000 whole life policy and paid the full initial premium to the soliciting…

A: Binding receipt - Binding receipt guarantees that if the insured dies before application is…

Q: Which of the following journal entries would be recorded when an entity contributes cash to its…

A: Journal Entry for Contribution to Defined Benefit Pension Plan will be: Defined Befit Pension…

Q: 15. Which of the following does not belong to the main products of life insurance? * O A. Endowment…

A: Insurance is a financial mechanism that protects an insured asset from any type of risk. There are…

Q: Warranty expense should be recorded in the period: that the product is repaired or replaced. O the…

A: The income statement is prepared to record the revenues and expenses of the current period. The net…

Q: An insurance company notifies an insured thal $50 of lhe insured's physician's charge is above he…

A: Normally the insurance companies cover only the UCR rates that is the usual, customary and…

Q: 59. What is a contractual adjustment? a. An adjusting entry made at year-end to accrue unpaid…

A: A Contractual Adjustment is a part of a patient's bill that hospital must write-off (not charge for)…

Q: The records for Redbud's defined benefit pension plan showed the following for the current year:…

A: The defined benefit pension plan is the obligation for the entity towards employees to compensate…

Q: S1: The straight-line method computes the unearned premiums, policy by policy, on a pro-rata basis…

A: Insurance contract is defined as the agreement under which the insurer of the contract promise to…

Q: long-term basis at the end of

A: Short-term obligation are those which mature within a period of one year. Long term obligations are…

Q: True or False? 1. An insurance contract is derecognized when it is extinguished and when it is…

A: An insurance contract is a contract between the two parties where one party promises to pay the…

Q: 1: PFRS 17 allows and insurer to change its accounting policies for insurance contract only if, as a…

A: Only the S1 is correct PFRS 17 said that insurer can change its accounting policy if it provides…

Q: The effect of a lender agreeing to give the borrowing entity a grace period after the reporting…

A: PAS 1, deals with the situations arising after the breach of loan covenants and provides a grace…

Q: Briefly explain the following life insurance contractual provisions. Suicide clause Grace period…

A: The objective of this question is to understand the meaning and implications of three specific…

Q: 17. The insurer will issue to the insured before completion of policy Form. *

A: Cover Note A cover note is a temporary certificate of insurance issued by the Insurer before the…

Q: 17. The insurer will issue to the insured before completion of policy form. O A. certificate of…

A: Insurance is a means of protecting oneself against financial loss. It's a sort of risk management…

Q: anticipated liability, which may or may not arise in future in known as a Current Liability b.…

A: ⇔Debts or obligations that must be paid within a year are referred to as current liabilities,…

Q: How will this transaction be classified?

A: Given information is: During year 13, Quo determined that an insurance premium paid and entirely…

Q: Prepare journal entries to record the warranty expense for the period and payment for the actual…

A: Introduction:- Journal entry is the first stage of accounting process. Journal entry used to record…

Q: Instructions At the beginning of the current year, Willow Company adopts a pension plan and awards…

A: Defined Benefit Pension Plan - A defined benefit pension plan is one in which the employer…

Q: After the expiry of the policy period On the death of the insured or on the expiry of policy period…

A: Insurance means where insurance company agree to pay the specified amount to insured person in case…

Q: Compute for the following: 1. Total pension expense (2021) 2. Pension Expense recognized in 2021…

A: Providing retirement benefits to employees is an important accounting concept that is related to…

Q: S1: In accordance with the accrual assumption, the full amount of the premium is recognized…

A: Here given the details of Accrual basis of assumption in the insurance premium collection, the…

Q: QUESTION 10 To assist pensioners with more than one source of income, legislation was introduced to…

A: Pensioners can have different sources of income. It makes the taxation of their income to be…

Q: The company selling the insurance policy is the _________________. a. Insurer b. Policy c. Premium…

A: Insurance is a means of protection from financial loss.

Q: 20. The written insurance document that may include all clauses, exception and conditions is called…

A: The written insurance document that may include all clauses, exception and conditions is called…

Q: f the renewal of the policy was at the discretion of the insurer, would you expect the premiums to…

A: Insurance renewal means that the coverage on insurance continues to exist after expiration of the…

Q: Which of the following statements regarding liabilities is true? Liabilities arise through a…

A: Introduction:- Liability is someone legally responsible to pay another person or company.…

Q: If an insured fails to pay the premium when due, the insured's heallh policy will remain in force…

A: Health insurance is a type of insurance that helps to pays for medical costs incurred as a result of…

Q: With regards to group life insurance, which of the following statements are true? 1. An individual…

A: An employer or similar large-scale body, such as an association or labor organization, may provide…

Q: An individual accident and health insurance policy must include O A. An automatic reinstatement…

A: In some form, every state in the US has passed the Uniform Individual Accident and Sickness Policy…

Q: Which of the following does not meet the definition O the signing of a cancellable contract for…

A: Solution: "The signing of a cancellable contract for purchase commitment" does not meet the…

Q: Which of the following is true about plan assets? Any excess return on plan assets are earned to…

A: Plan assets refer to the form of assets that are held onto by the owner for long-term employee…

Q: Question 4: Of the cafeteria plans listed, which is NOT a voluntary nontaxable deduction? Answer: А.…

A: In this question we choose that which one is nontaxable deduction.There are four options medicare,…

Q: The following information is available for the pension plan of Sandhill Company for the year 2020.…

A: Pension expense is the obligation of the company or cost incurred by the company for the pension…

Question

12. Which of the following events would not require a journal entry?

a Purchase of a one-year insurance policy?

b Agreement to perform a service at a future date.

c Performance of a service agreed to be paid on a later date.

d Payment for a service performed previously.

Definition Definition Method of recording financial transactions in the book of original entry by debiting and crediting the accounts affected by a transaction using the golden rules of accrual accounting.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Please don't provide handwriting solution
7
Give the answer of both 59&60 compulsory plzz
Under the TRAIN law, the amount of premium allowed per family during thetaxable year for health and/or hospitalization insurance is P2,500. a.true b.false
S1: The straight-line method computes the unearned premiums, policy by policy, on a pro-rata basis in respect of the unexpired periods of the respective insurance policies at the end of each period. S2: PFRS 17 exempts an insurer temporarily from some requirements of other PFRS in selecting accounting policies for insurance contract for liability adequacy test. S3: Insurers shall disclose the following information that identifies and explains the amounts in its financial statements arising from insurance contract which includes its accounting policies for insurance contract and related assets, liabilities, income and expenses. a. Only S3 is incorrectb. All statements are correctc. Only S2 is correctd. Only S3 is correcte. Only S1 is incorrectf. Only S2 is incorrectg. All statements are incorrecth. Only S1 is correct
Not a graded assignment. pls dont give me wrong answer
C. renewal notice O D. completing notes 19. is the document that acknowledge the insured legally entitled to receive the payment from the policy. * O A. Discharge notes B. Completion notes O C. Claim form O D. Policy form 20. The written insurance document that may include all clauses, exception and
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.
STATE: Which of the following statements regarding homeowner's insurance is true? A. The listing agent should advise the seller to cancel homeowner's insurance immediately after by the seller's standard homeowner's going under contract B. Vacant properties are always covered insurance police C. A seller that retains possession after closing may not be covered under their homeowner's insurance policy D. Homeowner's insurance policy premiums are not affected by previous claims
C. renewal notice O D. completion notes 18. A warning on duty to disclose changes affecting the existing policy inspection are sent to insured through O A. proposal form B. certificate of insurance O C. renewal notice O D. completing notes 19. is the document that acknowledge the insured legally entitled to receive the payment from the policy.
When MUST the Policy Summary for a life insurance policy be delivered? Prior to the sales presentation With or prior to delivery of the policy Within a year after delivery of the policy Only upon delivery of a replacement policy.
An employer's obligation for post-retirement benefits that are expected to be provided to an employee must be fully accrued by the date the a. Benefits are utilized b. Employee is fully eligible for benefits c. Employee retires d. Benefits are paid