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anygoal [31]
3 years ago
10

A company shows a $600 balance in Prepaid Insurance in the Unadjusted Trial Balance columns of the work sheet. The Adjustments c

olumns show expired insurance of $200. This adjusting entry results in: Select one: a. $200 decrease in net income. b. $200 increase in net income. c. $200 difference between the debit and credit columns of the Unadjusted Trial Balance. d. $200 of prepaid insurance. e. An error in the financial statements.
Business
1 answer:
Nesterboy [21]3 years ago
6 0

Answer:

a. $200 decrease in net income.

Explanation:

When insurance is paid in advance, the entries required are;

Debit Prepaid Insurance

Credit Cash account

As time elapses and the insurance expires,

Debit Insurance expense

Credit Prepaid Insurance

Given that the Adjustments columns show expired insurance of $200, this will be recorded as an expense and will thus decrease the net income.

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The statement is false.

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The Money Pit Mortgage Company is interested in monitoring the performance of the mortgage process. Fifteen samples of five comp
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Answer and Explanation:

As per the data given in the question,

Sum of the all mean value = 151

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Similarly, Sum of the all given range = 151

Average of given range value = 151÷ 15 = 10.067

Control charts for the mean and the range, using the original 15 samples :

Upper control limit(UCL) - Lower control limit(LCL) for X bar is

= 10.067 + A2 × R bar

= 10.067 + (0.223 × 10.067)

= 12.31

LCL - UCL for X bar  is

= 10.067 - A2 × R bar

= 10.067 -(0.223 × 10.067)

= 7.82

Set up the R-chart by specifying the center line and three-sigma control limits below :

UCLr = D4 × r      

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r = 10.067

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5 0
3 years ago
The typical starting point of any firm's marketing mix is the:____________
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