Author Question: Every individual who performs services for a business is considered to be an employee. a. True b. ... (Read 104 times)

abc · **on:** Jul 5, 2018

Every individual who performs services for a business is considered to be an employee.
a. True
b. False
Indicate whether the statement is true or false

Question 2

Rent-a-Wreck, Inc. paid 36,000 cash for a two-year insurance policy on April 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 36,000.
B) Decrease Prepaid insurance and recognize Insurance expense of 18,000.
C) Decrease Prepaid insurance and recognize Insurance expense of 13,500.
D) Decrease Cash and recognize Insurance expense of 13,500.