Chapter F3 29 15. The prepaid insurance account has a debit balance of $1,200 at the end of the year. If unexpired insurance at the end of the year is $800, the amount of prepaid insurance that should be reported on the end-of-year balance sheet is 16. Physical resources that are owned and used by a business and are per- 17. The portion of the cost of a fixed asset that is recorded as an expense 18. The difference between the cost of a fixed asset and its accumulated depre- 19. The net income reported on the income statement is $90,000. However, manent or have a long life are called each year of its useful life is called ciation is called the of the asset. adjusting entries have not been made at the end of the period for insurance expense of $550 and accrued salaries of $750. The correct net income should have been 20. The trial balance is prepared after all the adjusting entries have been posted