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Recording Purchases and Cash Payments a. What term is used to describe the payment for
Chapter 15, Problem 5(choose chapter or problem)
QUESTION:
Recording Purchases and Cash Payments
a. What term is used to describe the payment for insurance coverage?
b. What account is debited when insurance is purchased?
Questions & Answers
QUESTION:
Recording Purchases and Cash Payments
a. What term is used to describe the payment for insurance coverage?
b. What account is debited when insurance is purchased?
ANSWER:Step 1 of 3
Insurance is the tool used by business to reduce the level of the risk. Cost incurred to purchase the insurance is considered as the insurance expense in the income statement.