Use the information in the adjusted trial balance presented below to calculate the current ratio for Taron Company, Inc.: 1.87.54 3.92 1.77 1.60 The total amount of depreciation recorded against an asset over the entire time the asset has been owned: Is referred to as depreciation expense. Is referred to as accumulated depreciation. Is shown on the income statement of the final period. Is only recorded when the asset disposed of. Is referred a an accrued asset. What is the proper adjusting entry at December 31, the end of the accounting period, if the balance in the prepaid insurance account is $7,750 before adjustment, and the unexpired amount per analysis policies is $3,250? Debit Insurance Expense, $3,250; credit Prepaid Insurance, $3,250. Debit Insurance Expense. S4.500; credit Prepaid Insurance. $4,500. Debit Prepaid Insurance. $4,500; credit Insurance Expense. $4,500. Debit Insurance Expense. $7,750; credit Prepaid Insurance. $7,750. Debit Cash, $7,750; Credit Prepaid Insurance, $7,750. A company made no adjusting entry for accrued and unpaid employee salaries of $9,000 on December 31. Which of the following statements is true? It will have no effect on income. It will overstate assets and liabilities by S9.000. It will understate net income by S9.000. It w ill understate assets by $9,000. It will understate expenses and overstate net income by $9,000. A company's net sales were $676,600, its cost of goods sold was $236,810 and its net income was $33,750. Its gross margin ratio equals: 5% 9.6% 35% 65%