Author Question: Government laws and regulations regarding payroll are much more complex for employees than for ... (Read 65 times)

oliviahorn72 · **on:** Jul 5, 2018

Government laws and regulations regarding payroll are much more complex for employees than for independent contractors.
a. True
b. False
Indicate whether the statement is true or false

Question 2

Rent-a-Wreck, Inc. paid 36,000 cash for a one-year insurance policy on July 1, 2011. What adjustment should the company make before preparing its annual financial statements on December 31, 2011?

A) Decrease Cash and increase Prepaid insurance by 18,000.
B) Decrease Prepaid insurance and recognize Insurance expense of 18,000.
C) Decrease Prepaid insurance and recognize Insurance expense of 36,000.
D) Decrease Cash and recognize Insurance expense of 18,000.