Accounting 9706 · AS & A Level · Preparation of financial statements

Preparation of financial statements — practice question

A business prepares its financial statements to 30 April each year. The ledger account balances on 1 May 2014 included insurance (debit) $800. On 31 October 2014, an insurance premium of $2100 was paid for the year ending 31 October 2015. Which amount was included as insurance expense in the income statement for the year ended 30 April 2015?

  • A$1050
  • B$1850
  • C$2100
  • D$2900

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