ABC Company acquired a fire insurance on Nov. 1, 2021. The company paid P12,000 for the said annual insurance. ABC uses asset method. What is the amount of Prepaid Insurance to be reflected on ABC Company Statement of Financial Position at the end of the year? A. 0 B. 10,000 C. 2,000 D. 12,000
ABC Company acquired a fire insurance on Nov. 1, 2021. The company paid P12,000 for the said annual insurance. ABC uses asset method. What is the amount of Prepaid Insurance to be reflected on ABC Company Statement of Financial Position at the end of the year? A. 0 B. 10,000 C. 2,000 D. 12,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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ABC Company acquired a fire insurance on Nov. 1, 2021. The company paid P12,000 for the said annual insurance. ABC uses asset method. What is the amount of Prepaid Insurance to be reflected on ABC Company Statement of Financial Position at the end of the year?
A. 0
B. 10,000
C. 2,000
D. 12,000
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