Asked by
Marsella Ventura
on Oct 16, 2024
Verified
A company paid $9,000 for a twelve-month insurance policy on February 1.The policy coverage began on February 1.On February 28,$750 of insurance expense must be recorded.
Insurance Expense
It refers to the cost attributed to purchasing insurance policies for a business, which is typically considered an operational expense.
Insurance Policy
A legal contract between an insurer and the insured, where the insurer agrees to compensate the insured for specific losses in exchange for a premium.
- Acquire knowledge on and perform calculations for accrued expenses.
- Discern and note adjustments for prepayments and unearned income.
Verified Answer
BW
Learning Objectives
- Acquire knowledge on and perform calculations for accrued expenses.
- Discern and note adjustments for prepayments and unearned income.