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...

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Similar questions

Which of the following situations does not base an accounting measure on a present value? Prepaid insurance , leases, pensions or sinking funds
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
If an adjustment includes an entry to a payable or receivable account, which type of adjustment is it? 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
What is the largest estimated possible loss that could arise in a safe payment schedule? no need to explain a. Book value of recorded assets b. Book value of recorded non cash assets c. Fair value of recorded assets d. Any of the above
Please solve
Identify the types of information that can readily be deter-mined from an amortization table for an installment loan. (More than one answer may be correct.)a. Interest expense on this liability for the current year. b. The present value of the future payments under chang-ing market conditions. c. The unpaid balance remaining after each payment.d. The portion of the unpaid balance that is a currentliability.
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
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
Which option is not a short term adjustment? A. Prepaid expense B. Depreciation C. Income received in advance D. Accrued income Explain your answer
no need to explain In the preparation of a schedule of safe payments, cash withheld for future liquidation expenses, and unrecorded liabilities that may be discovered is treated as: a. Operating expenses b. Other Expense c. Loss on realization d. Possible loss
41.Which of the following shall be taken into consideration when measuring and recognizing impairment loss on receivables?A. Past experiences on the collectability of the receivablesB. Present condition of the debtor, including the present economic environmentC. Future expectations based on information that are available without undue cost and effort a. A, B and C b. A and B only c. A only d. B only

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