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On May 1, Trinity, Inc. paid $3,600 for an insurance premium on a three-year insurance policy. At the end of December, Trinity’s fiscal year-end, what should be the balance in the prepaid insurance account?

A _____ is an economic event that under generally accepted accounting principles (GAAP) affects an element of the financial statements and must be recorded.

Financing activities_____.

If liabilities total $20,000 and stockholders’ equity totals $70,000, then assets must total _____.

Flyer Co. billed a client for flying lessons given in January. The payment was received in February. Under the accrual basis of accounting, when should Flyer Co. record the revenue?

Johnson, Inc. paid rent expense of $5,500 for the month of October. How are the accounts affected due to this transaction?

_____ represent rights of a long-term nature, such as patent rights, copyrights, and goodwill.

A financial statement that summarizes the cash receipts and cash payments of a company for a specific period of time is _____.

Accrued expenses are ordinarily reported on the balance sheet as _____.

Which of the following accounts would require an adjustment when making an adjusting entry for a deferral?