Cost is ________.
A) only the amount of cash paid to buy an asset
B) the amount of an asset consumed during a period
C) the cash plus cash equivalent amount paid to buy an asset
D) the decreases in shareholders' equity when an asset is purchased
Question 2
Rent a Wreck, Inc. began operations on July 1, 2012. On July 1, the company paid 9,600 cash in advance for a one-year insurance policy beginning on that day. What will the company report for prepaid insurance on its balance sheet at July 31, 2012?
A) 800
B) 9,600
C) 4,800
D) 8,800
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