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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   Which of the following is a characteristic of a partnership? A. The business is liable for its own debtsB. The business can be suedC. The business has no legal personalityD. The business is responsible for its own taxes

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   Which of the following is a characteristic of a partnership? A. The business is liable for its own debtsB. The business can be suedC. The business has no legal personalityD. The business is responsible for its own taxes

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter6: Cash And Receivables
Section: Chapter Questions
Problem 6MC: Prior to adjustments, Barrett Companys account balances at December 31, 2019, for Accounts...
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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 000
D. The profit will decrease by R24 000

 

Which of the following is a characteristic of a partnership?

A. The business is liable for its own debts
B. The business can be sued
C. The business has no legal personality
D. The business is responsible for its own taxes

 

 

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