Author Question: The 4,500 balance in Prepaid Insurance represents the premium paid in advance for a three-month ... (Read 82 times)

mrsjacobs44

  • Hero Member
  • *****
  • Posts: 500
The 4,500 balance in Prepaid Insurance represents the premium paid in advance for a three-month liability insurance policy. Assuming that 2 months of premium has now expired, the adjustment would be recorded in the work sheet as a:
 a. debit to Prepaid Insurance, 4,500
  b. credit to Prepaid Insurance, 1,500
  c. debit to Insurance Expense, 4,500
  d. debit to Insurance Expense, 3,000

Question 2

Why it is important to distinguish between enterprise goodwill and personal goodwill in divorce valuations?
 
  A) In many states, enterprise goodwill is not considered a marital asset while personal goodwill is.
  B) In many states, enterprise goodwill is considered a marital asset while personal goodwill is not.
  C) Enterprise goodwill can be valued reasonably, while it is not possible to value personal goodwill.
  D) Enterprise goodwill cannot be separately identified, while personal goodwill can be identified.



Bsand8

  • Sr. Member
  • ****
  • Posts: 327
Answer to Question 1

D

Answer to Question 2

B
Explanation: B) In divorce valuations, it may be necessary to distinguish between enterprise goodwill, which is tied to the business entity, and personal goodwill, which is tied to a particular individual. This distinction is important because, in many states, enterprise goodwill is considered a marital asset while personal goodwill is not.



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

Since 1988, the CDC has reported a 99% reduction in bacterial meningitis caused by Haemophilus influenzae, due to the introduction of the vaccine against it.

Did you know?

Malaria was not eliminated in the United States until 1951. The term eliminated means that no new cases arise in a country for 3 years.

Did you know?

The ratio of hydrogen atoms to oxygen in water (H2O) is 2:1.

Did you know?

Drug abusers experience the following scenario: The pleasure given by their drug (or drugs) of choice is so strong that it is difficult to eradicate even after years of staying away from the substances involved. Certain triggers may cause a drug abuser to relapse. Research shows that long-term drug abuse results in significant changes in brain function that persist long after an individual stops using drugs. It is most important to realize that the same is true of not just illegal substances but alcohol and tobacco as well.

Did you know?

To maintain good kidney function, you should drink at least 3 quarts of water daily. Water dilutes urine and helps prevent concentrations of salts and minerals that can lead to kidney stone formation. Chronic dehydration is a major contributor to the development of kidney stones.

For a complete list of videos, visit our video library