The insurance total in the pre-adjustment trial balance of AVI Stores on 30 June 2023 (the end of the financial year) was R30 000. The amount included an insurance premium of R6 000 that was paid for the period 01 November 2022 to 31 October 2023. Which of the following statements is true? A. The current liabilities will increase by R2 000 B. The current assets will increase by R4 000 C. The insurance expense for the year ended 30 June 2023 was R28 000D. The profit will decrease by R24 000

The insurance total in the pre-adjustment trial balance of AVI Stores on 30 June 2023 (the end of the financial year) was R30 000. The amount included an insurance premium of R6 000 that was paid for the period 01 November 2022 to 31 October 2023. Which of the following statements is true? A. The current liabilities will increase by R2 000 B. The current assets will increase by R4 000 C. The insurance expense for the year ended 30 June 2023 was R28 000D. The profit will decrease by R24 000

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter4: The Adjustment Process

Section: Chapter Questions

Problem 11Q: If the Prepaid Insurance account had a balance of $12,000, representing one years policy premium,...

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