chapter 5 Q#10-11 290T

On March 1 of Year 1, Murray Company paid cash for insurance. This insurance payment covers the period from March 1 of Year 1 to February 28 of Year 2. On March 1 of Year 1 this amount was recorded as an asset, Prepaid Insurance. Which debit or credit is correctly included in the adjusting journal entry necessary on December 31 with respect to this insurance paid in advance? DEBIT to Cash DEBIT to Prepaid Insurance CREDIT to insurance Expense DEBIT to Insurance Expense Accounts in a company's general ledger are divided into different categories. One of these categories is defined as follows: "Accounts that are temporary and are really just subcategories of Retained Earnings." What label is given to these accounts? Nominal Real Subsidiary Accrual Fiscal