Answered: 5) A company would classify a six-month…

5) A company would classify a six-month prepaid insurance policy as: A) Property, plant, and equipment. B) Investment. C) Current asset. D) Goodwill. which one would be the correct answer?

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: Match the words with the term. Question 4 options: one who pays to use an asset…

A: Lease: It is an agreement between two parties where one party acquires the right to use of an asset…

Q: ndicate all statements that are correct. Select one or more: a. Net Income is higher at first…

A: The lease system is type of arrangement in which right to use of the assets is given by payment of…

Q: The type of account and normal balance of prepaid insurance would be

A: An asset is a resource controlled by an entity from which future economic benefits flow to the…

Q: There are four security interests listed below. Which will have first priority? Group of answer…

A: Explanation: The purchase money security interest concept relates to a legal claim that helps a…

Q: b) Define deductible. c) What happens to your premium when the deductible is lowered? d) List three…

A: Honor code: Since you have posted a question with multiple sub-parts, we will solve the first three…

Q: Depending on the length of time, assets will either be categorized as current or long-term. Go to…

A: Current assets are those assets whose expected life is within one year. While as, long-term assets…

Q: The basic difference between a direct-financing lease and a sales-type lease is the allocation of…

A: A lease is an agreement that describes terms and conditions. It is an agreement, where one party…

Q: How is the account Prepaid Insurance classified and on which financial statement should it be…

A: Prepaid insurance is the portion of an insurance premium that has been paid in advance and has not…

Q: Using (1) factor tables, (2) a financial calculator, or (3) Excel functions, calculate the amount of…

A: Finance leases and operating leases are the two forms of leases recognized by International…

Q: Explain why investees' ESG performance matters for insurers' investment profitability, and the…

A: Investors utilise the Environmental, Social, and Governance (ESG) framework to assess a company's…

Q: A(n) is a contract for the use of an asset for a period of time without having to buy the asset. Oa.…

A: lease: lease is a contract to buy the right to use the asset for particular period of time on…

Q: Which of the following cash flows is classified as an investing cash flow? A. interest portion of…

A: Cash flow statement means the statement which shows the cash flow in or out of business enterprises…

Q: 1. WHAT IS LONG-TERM CONSTRUCTION CONTRACTS? ELABORATE AND GIVE EXAMPLES OF LOCAL CONSTRUCTION…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

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: What other steps should be taken to make sure that the remaining balance in the prepaid account for…

A: Prepaid expenses are expenses that have been paid in advance but have not yet been incurred or…

Q: Long term liabilities are usually associated with -purchase of a building -purchase of equipment…

A: Long term liabilities: These include all the obligations and debts that the company owes for a…

Q: Which of the following accounts would be classified as a fixed (property, plant and equipment…

A: Plant assets are long-term fixed assets that are used to make or sell products and services for a…

Q: The contents of a building are valued at $250,000 and insured subject to 90% co-insurance for…

A: The insurance term that describes this process is "actual cash value (ACV)." ACV refers to the value…

Q: When a lessor receives cash on an operating lease, which of the following accounts is increased? A.…

A: Lease classify as sale type lease means it is a financial lease where lessor has given right to use…

Q: How is the account Prepaid Insurance classified and on which financial statement should it be…

A: Financial statements: Financial statements are condensed summary of transactions communicated in the…

Q: At the beginning of an operating lease, the lessor will record what asset or assets, if any?

A: An operating lease is a contract that allows for the use of an asset but does not convey ownership…

Question

100%

5) A company would classify a six-month prepaid insurance policy as:

A) Property, plant, and equipment.

B) Investment.

C) Current asset.

D) Goodwill.

which one would be the correct answer?

Definition Definition Intangible asset that includes proprietary or intellectual property and brand value of a firm. Goodwill is recorded in the books when a firm purchases another firm and the purchase price is more than the fair value of net identifiable assets of the acquired business. The amount of goodwill is recorded on the asset side of the balance sheet (statement of financial position).

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: Define Current Assets -

VIEW

Step 2: Computation of Prepaid Insurance -

VIEW

Solution

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

Find a publicly traded company that has assets under capital lease on its balance sheet. Provide a link to the balance sheet in your post, and explain the details of the leasing transactions based on the amounts and disclosures found in the financial statements. What potential benefits do you think the company expected when choosing to lease, rather than buy, these assets? Do not choose a company that has already been reported on by one of your classmates. Participate in follow-up discussion by critiquing the posts provided by your classmates and defending their challenges to your post. All posts should be grammatically correct and proofread for spelling.
Which of the following would be an example of a "transactional" adjustment made to a comparable sale? An adjustment for below-rate financing An adjustment for the property's use An adjustment for the property's location An adjustment for the property's operating expenses
38. In an operating lease, the lessee records interest expense. lease expense. amortization expense and lease expense. amortization expense.
Complete this question by entering your answers in the tabs below. Req 1 to 3 and 5 Req 4 Req 6 Req 7 Req 8 Req 9 Req 10 Req 11 1. How should this lease be classified by Yard Art Landscaping (the lessee)? 2. Calculate the amount Yard Art Landscaping would record as a right-of-use asset and a lease liability. 3. How should this lease be classified by Branch Motors (the lessor)? 5. Calculate the amount Branch Motors would record as sales revenue. Note: Round your intermediate and final answers to nearest whole dollar. 1. This lease should be classified by Yard Art as a 2. The amount that Yard Art would record as a right-of-use asset and a lease liability would be 3. This lease should be classified by Branch Motors as a 5. The amount that Branch Motors would record as sales revenue would be Show less▲
What is lease rent and lease income? Do I have to record initial direct costs when I record payment? Do I need to derecognize the asset?
. In determining the amount of a provision, a company using IFRS should generally measure: a. using the midpoint of the range between the lowest possible loss and the highest possible loss. b. using the minimum amount of the loss in the range. c. using the best estimate of the amount of the loss expected to occur. d. using the maximum amount of the loss in the range.