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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?

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

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

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?