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Data Ltd uses accrual accounting and its financial year ends on 30 June. Expenses paid in advance are treated as assets. On 1 May 2016,
Data Ltd uses accrual accounting and its financial year ends on 30 June. Expenses paid in advance are treated as assets. On 1 May 2016, Data Ltd pays $480 for a one-year fire insurance policy that expires on 30 April 2017. Which of the following will appear on Data Ltds balance sheet at 30 June 2016?
Select one:
a.
Prepaid insurance $480.
b.
Prepaid insurance $400.
c.
Prepaid insurance $80.
d.
Insurance expense $80.
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