Asked by
Alezha Denkins
on Dec 17, 2024
Verified
If Insurance Expense was $7,100, and there was a decrease in Prepaid Insurance of $4,700, what would be the cash amount paid for Insurance?
A) $2,400
B) $11,800
C) $7,100
D) $4,700
Prepaid Insurance
An asset account that represents insurance payments made in advance of the period in which the insurance coverage applies.
Cash Amount
The total value of cash on hand, including currency, coins, and balances in demand deposit accounts.
- Measuring and dissecting cash inflows and outflows applying the direct method in different financial accounts, such as operating expenses, salaries, merchandise inventory, and insurance.
- Scrutiny of the impact that modifications in working capital accounts such as Prepaid Expenses, Salaries Payable, Accounts Receivable, Inventories, and Accounts Payable have on cash flow activities.
Verified Answer
KM
Learning Objectives
- Measuring and dissecting cash inflows and outflows applying the direct method in different financial accounts, such as operating expenses, salaries, merchandise inventory, and insurance.
- Scrutiny of the impact that modifications in working capital accounts such as Prepaid Expenses, Salaries Payable, Accounts Receivable, Inventories, and Accounts Payable have on cash flow activities.
Related questions
Operating Expenses Other Than Depreciation Expense for the Year Were ...
Operating Expenses Other Than Depreciation Expense for the Year Were ...
When Using the Direct Method to Determine the Net Cash ...
If Salaries Expense Was $38,000, and There Was a Decrease ...
If Salaries Payable Increased, the Amount of the Increase Would ...