1. The cost of insurance is considered an expense:

Multiple Choice

A. Only when the entire policy period has passed.

B. Only when the policy is purchased.

C. Only when the premium is paid.

D. Evenly over the term of the policy.

2. Adjusting entries are prepared:

Multiple Choice

A. Before financial statements and after a trial balance has been prepared.

B. After a trial balance has been prepared and after financial statements are prepared.

C. After posting but before a trial balance is prepared.

D. Anytime an accountant sees fit to prepare the entries.