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Viefleur [7K]
3 years ago
11

Which of the following transactions are examples of prepayments that will require an adjustment at the end of the accounting per

iod on December 31? (Select all that apply.)
A. A company records interest expense that has accrued, but will not be paid until next year.
B. A company pays a 6-month insurance premium at the beginning of October.
C. A company pays a utility bill for charges incurred in the previous month.
D. A company pays for 4 months of advertising in the Wall Street Journal on November 1.
Business
1 answer:
iren [92.7K]3 years ago
3 0

Answer:

Which of the following transactions are examples of prepayments that will require an adjustment at the end of the accounting period on December 31? (Select all that apply.)

B. A company pays a 6-month insurance premium at the beginning of October.

D. A company pays for 4 months of advertising in the Wall Street Journal on November 1.

Explanation:

B. A company pays a 6-month insurance premium at the beginning of October.

Record expenses for 3 months. Oct-nov-dec. Otrher 3 months are prepaid expenses.

D. A company pays for 4 months of advertising in the Wall Street Journal on November 1.

Record expenses for 2 months. Nov-Dec. Other 2 months are prepaid expenses.

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