O-LevelAccountingAccounting procedures7707/12 · Oct/Nov 2013 · Q101 Mark

In December 2012 Emma paid insurance, $30, in respect of January 2013. How would this be shown in the 2012 financial statements and in the insurance account in January 2013? financial statements for the year ended 31 December 2012 insurance account on 1 January 2013 accrual prepayment debit balance credit balance

Aaccrual: ✓, debit balance: ✓

Bprepayment: ✓, credit balance: ✓

Cprepayment: ✓, debit balance: ✓

Dprepayment: ✓, debit balance: ✓

✓ Correct answer

D: prepayment: ✓, debit balance: ✓

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Topic: Accounting procedures, O-Level Accounting (syllabus 7707). Multiple choice, 1 mark.
Source: O-Level Accounting, Oct/Nov 2013 Paper 1 Variant 2, question 10.

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