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Whitepunk [10]
3 years ago
8

The balance in the prepaid insurance account before adjustment at the end of the year is $6,400, which represents the insurance

premiums for four months. The premiums were paid on November 1. The adjusting entry required on December 31 is:
Business
1 answer:
Arisa [49]3 years ago
3 0

Answer:

Insurance Expense $6,400 (debit)

Prepaid Insurance $6,400 (credit)

Explanation:

The Prepaid Insurance Account is an Asset Account. This is because it represents economic resources controlled by the firm as a result of past events (payment of insurance in advance) from which economic benefits are expected to flow into the business (insurance services).

As the Insurance is utilized, the Asset account decreases whilst the Expense Account Insurance Expense increases. The following journal entry shows how this happens.

Insurance Expense $6,400 (debit)

Prepaid Insurance $6,400 (credit)

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The liquidity approach to measuring money defines the m2 money supply as
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<span>The liquidity approach to measuring money defines the M2 money supply as the temporary store of value of anything that could be turned into money or has high liquidity. When they measure the assets they are trying to determine what would be the best to liquidate to make sure they are getting the most money from their items. </span>
3 0
3 years ago
A restaurant owner is trying to decide whether to stay open at lunchtime. She has far fewer customers at lunch than at dinner an
anygoal [31]

Explanation:

A restaurant owner should not close the restaurant over the lunchtime. He should only do that if he is sure that he won't have any customer over lunchtime but since he has fewer of them, she should open it.

Also, it is giving him the ability to pay for some of the expenses which is also good for the restaurant.

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3 years ago
_____ is defined as a strategy in which a firm engages in several different businesses that may or may not be related in order t
Vlad1618 [11]

Answer:

Diversification

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6 0
3 years ago
Which of the following is not an objective of proactive scanning? Identify and define potential opportunities and threats. Paint
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The option that is not an objective of proactive scanning is: Paint a picture of the future 20+ years into the future.

<h3>What is proactive scanning?</h3>

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This scanning method can be used to detect threats and important events. They could also serve useful functions to employers and managers.

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6 0
3 years ago
he hedge ratio of an at-the-money call option on IBM is 0.35. The hedge ratio of an at-the-money put option is -0.65. What is th
Kazeer [188]

Answer:

- 0.30

Explanation:

Given the following :

Hedge ratio of an at-the-money call option on IBM = 0.35

Hedge ratio of an at-the-money put option = - 0.65

Hedge ratio of an at-the-money straddle =?

Hedge ratio of an at-the-money straddle is given by :

(Hedge ratio of an at-the-money call option + Hedge ratio of an at-the-money put option)

Hedge ratio of an at-the-money straddle :

(0.35 + (-0.65))

= (0.35 - 0.65)

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5 0
4 years ago
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