On March 31, 2017, Sammie Co. purchased a twelve month insurance policy in the amount of $1,800. The compan 1. y has a year-end of December 31. On December 31, 2017, the amount of the prepaid insurance account and the insurance expense would be a) SO and $1,800. b) $1,800 and $0. c) $450 and $1,350. d) $1,350 and $450. Which one of the following would NOT be considered an advantage of the corporate form of organization? 2. a) Limited liability of shareholders. b) Separate legal existence. c) Continuous life. d) Government regulation. 3. The two qualitative characteristics that are defined in terms of what infil e two qualitative characteristics that are defined in terms of what influences or makes a difference to a decision maker are a) Faithful representation and materiality. b) Comparability and timeliness c) Materiality and relevance. d) Relevance and understandability The payment of interest (excluding principal repayment) on long-term liabilities would be reported on a cash flow statement under the: 4. a) Operating activities. b) Investing activities. c) Financing activities. d) Either investing activities or financing activities