Desert Company reports the following for the year 202X: 1/1/202X 12/31/202X Prepaid Insurance $1,500 $1,800 Insurance Payable
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Question:
Desert Company reports the following for the year 202X:
1/1/202X | 12/31/202X | |
Prepaid Insurance | $1,500 | $1,800 |
Insurance Payable | $1,800 | $1,600 |
Desert had Insurance Expense of $12,000 for 202X. In order to convert from the accrual to cash paid for insurance, Desert would do which of the following?
Group of answer choices
Subtract the change in Prepaid Insurance and add the change in Insurance Payable
Subtract the change in Prepaid Insurance and subtract the change in Insurance Payable
Add the change in Prepaid Insurance and subtract the change in Insurance Payable
Add the change in Prepaid Insurance and add the change in Insurance Payable
Related Book For
Introduction to Management Accounting
ISBN: 978-0133058789
16th edition
Authors: Charles Horngren, Gary Sundem, Jeff Schatzberg, Dave Burgsta
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