3 and 4

3. (CIA, adapted) What is the purpose of the following entry? Prepaid Insurance XX Insurance Expense XX A. To recognize insurance expired, if insurance premium payments are recorded in prepaid insurance. B. To recognize unexpired insurance costs, if insurance premium payments are recorded in insurance expense. C. To record insurance premium payments during or at the end of the period. D. To close the expense account for insurance at the end of the period. 4. Under accounting principles generally accepted in the United States, in order for an item to qualify for recognition in the financial statements of a company, the item must I. Be measurable in monetary terms II. Reflect the consensus expectations of investors III. Meet the definition of an element of the financial statements A. I only. B. I and III only. C. I, II, and III. D. II and III only