Author Question: Which of the following entries records the payment of a bill for your insurance premium? a. debit ... (Read 119 times)

jCorn1234 · **on:** Jul 5, 2018

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.