Author Question: The Management Discussion and Analysis is of potential interest to the analyst because it contains ... (Read 34 times)

acc299 · **on:** Jul 6, 2018

The Management Discussion and Analysis is of potential interest to the analyst because it contains information that cannot be found in the financial data.

Indicate whether the statement is true or false

Question 2

Coffee Co has a 3,600 balance in Prepaid Insurance that represents the premium paid in advance for a six-month liability insurance policy. Assuming that 4 months of premium is still remaining, the adjustment would be recorded in the work sheet as a:
a. credit to Insurance Expense, 2,400
b. debit to Insurance Expense, 2,400
c. credit to Prepaid Insurance, 1,200
d. debit to Prepaid Insurance, 1,200