The adjusting entry for expired or used insurance will increase the Insurance Expense account.
a. True
b. False
Indicate whether the statement is true or false
Question 2
The Public Utilities Enterprise Fund was ordered by the court to pay environmental damages of 500,000 . The fund is to pay 100,000 immediately and the remaining 400,000 in equal installments for four additional years.
In the year of the judgment, the Enterprise Fund would report
a. 500,000 in expenses.
b. 400,000 in liabilities.
c. 100,000 in expenses.
d. both items a and b.
e. both items b and c.
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