Question

Fink Insurance collected premiums of $17,900,000 from its customers during the current year. The adjusted balance in the Deferred premiums account increased from $4.0 million to $8.4 million dollars during the year. What is Fink's revenue from insurance premiums recognized for the current year?a. $22,300,000.b. $9,500,000.c. $13,500,000.d. $17,900,000.

Answer 1

Answer:

Fink's revenue from insurance premiums for the current year is: $13,500,000

Explanation:

Insurance premiums recognised for the current year -

Insurance collected + Beginning Deferred premiums account - Ending Deferred premiums account

= $ 17,900,000 + 4,000,000 - 8,400,000 = $13,500,000