Which of the following entries records the payment of a bill for ...

[jCorn1234]

Which of the following entries records the payment of a bill for your insurance premium?
 a. debit Prepaid Insurance; credit Cash
  b. debit Insurance Payable; credit Accounts Receivable
  c. debit Accounts Payable; credit Cash
  d. debit Cash; credit Prepaid Insurance

Question 2

Which of the following is an appropriate use of a fund balance reserve?
 
  a. To report amounts owed for goods received, but not yet paid.
  b. To indicate that the finance director is setting aside a substantial amount of resources for a special project.
  c. To report the expected costs of orders outstanding at year-end that are to be filled in the next fiscal year.
  d. To report the amount of long-term debt that will mature in the next 12 months.

[princessflame2016]

Answer to Question 1

a

Answer to Question 2

C

[jCorn1234]

Excellent

[FergA]

TYSM