I need answer correct What is the proper accounting treatment for prepaidinsurance when a policy is cancelled mid-term withpartial refund?a) Continue amortization until original end dateb) Record refund as gain in current periodc) Expense remaining prepaid balanced) Adjust prepaid asset and record refund receivable

Explanation of Prepaid Insurance: Prepaid insurance is an asset account that represents insurance…

Answered: What is the proper accounting treatment…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter4: The Adjustment Process

Section: Chapter Questions

Problem 7MC: Which type of adjustment occurs when cash is not collected or paid, but the related income or...

See similar textbooks

Similar questions

Which of the following situations does not base an accounting measure on a present value? Prepaid insurance , leases, pensions or sinking funds
On a Closing Disclosure, the method used to compute adjustments for insurance and taxes is known as A reconciliation. B. pro-ration. C D substitution. amortization.
Which type of adjustment occurs when cash is not collected or paid, but the related income or expense is reportable in the current period? A. accrual B. deferral C. estimate D. cull
When the amount of rebate on bills discounted shown in the adjustments, then it has to be: a. Deducted from discounts received on bills and shown in other liabilities b. Deducted from discounts on bills purchased and shown in fixed assets c. Deducted from discounts received on bills and shown in other assets d. Added to discounts received on bills and shown in other liabilities
Please solve
Which of the following items represents a deferral?A. Prepaid insuranceB. Wages payableC. Fees earnedD. Accumulated depreciation
If the cash amount paid to satisfy the “Asset Retirement Obligation” (ARO) account balance is greater than the ARO balance, which of the following is true? A gain should be recorded A loss should be recorded Neither a gain nor a loss should be recorded
What will be the result for failing to record the year-end adjustment for accrued interest on a note payable? O An understatement of expense and an understatement of current liabilities An understatement of expense and an overstatement of current liabilities An overstatement of expense and an understatement of current liabilities An overstatement of an expense and an overstatement of current liabilities
1.Which of the following is not an acceptable presentation of current liabilities? Listing current liabilities according to amount. Offsetting current liabilities against current assets. Listing current liabilities in the order of maturity. Showing current liabilities in the order of liquidation. 2. A deferred revenue not collectible within 1 year is a Non-current liability Current Liability Neither a current liability or a non-current liability Can be a current liability or a non-current liability 3. For a debt restructuring involving substantial modification of terms, it is appropriate for a debtor to recognize a gain when the carrying amount of the debt: Exceeds the total future cash payments. Exceeds the present value of the future cash payments. Is less than present value of future cash payments. Is less than the total future cash payments. 4. The major difference between convertible bonds and bonds issued with share warrants is that upon exercise of the warrants The…
If an adjustment includes an entry to a payable or receivable account, which type of adjustment is it? a. Estimate b. Accruals c. Deferrals d. Provision
Bad debts under the allowance method are A reserve created to meet expected next period expense. An expense of the current period under the matching principle. An expense of the next period recognized in the current period under the conservatism principle. None of the above
Subject: Financial Accounting-How do satisfaction-guaranteed refund policies affect revenue recognition? a) Defer all revenue until right expires b) Recognize only non-refundable portion c) Estimate returns based on experience d) Wait for actual returns

SEE MORE QUESTIONS

Recommended textbooks for you

Principles of Accounting Volume 1

Accounting

ISBN:

9781947172685

Author:

OpenStax

Publisher:

OpenStax College

Business/Professional Ethics Directors/Executives…

Accounting

ISBN:

9781337485913

Author:

BROOKS

Publisher:

Cengage

Century 21 Accounting Multicolumn Journal

Accounting

ISBN:

9781337679503

Author:

Gilbertson

Publisher:

Cengage

Principles of Accounting Volume 1

Accounting

ISBN:

9781947172685

Author:

OpenStax

Publisher:

OpenStax College

Business/Professional Ethics Directors/Executives…

Accounting

ISBN:

9781337485913

Author:

BROOKS

Publisher:

Cengage

Century 21 Accounting Multicolumn Journal

Accounting

ISBN:

9781337679503

Author:

Gilbertson

Publisher:

Cengage

Century 21 Accounting General Journal

Accounting

ISBN:

9781337680059

Author:

Gilbertson

Publisher:

Cengage

SEE MORE TEXTBOOKS