When looking for a job, Grazian argues that weak social connections are more valuable than strong ones. This concept, known as "the strength of weak ties," suggests that individuals with diverse social networks, including acquaintances and casual connections, have better access to job opportunities compared to those with close-knit networks of strong ties.
While strong ties, such as close friends and family, provide emotional support and social cohesion, they often share similar information and resources. On the other hand, weak ties connect individuals to different social circles, exposing them to novel information, diverse perspectives, and a broader range of job opportunities.
Weak ties bridge different social networks and offer access to untapped resources, connections, and information. They can provide insights into job openings, industry trends, and potential referrals that may not be available within one's immediate circle. Weak ties are often associated with serendipitous encounters and chance opportunities, expanding the individual's network and increasing their chances of finding suitable employment.
Grazian's argument highlights the importance of nurturing and leveraging weak ties in the job search process. Engaging in activities that foster diverse social connections, such as attending networking events, participating in professional organizations, and maintaining an active online presence, can enhance the chances of discovering new career prospects and accessing hidden job markets.
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Sean works at Rowen Corp., an environmentally conscious apparel manufacturing company. He primarily focuses on the tastes and needs of the firm's customers. He achieves this by managing a team that regularly interacts with customers through various promotional activities and events. He also provides insights on how to produce eco-friendly outfits through his specialized knowledge of cost-efficient manufacturing processes. This implies that Sean:_______.a) is an HR professional.
b) encourages centralized decision making.
c) is a knowledge worker.
d) encourages a narrow business focus.
e) belongs to the external labor market.
Answer:
c) is a knowledge worker
Explanation:
A knowledge worker is an individual who is skillful, experienced, educated and whose duty is to apply his or her thinking creativity on the job. According to Peter Drucker, a knowledge worker is someone who is innovative and creative in terms of developing new products and services and one who always find a better way of doing things.
The job of a knowledge work is very complex hence involves expertise on the subject field. A knowledge worker most often develop new ideas and strategies to meeting needs of people rather than focusing on manual and repetitive work. Example of knowledge workers includes but not limited to engineers, scientists, physicians, lawyers etc.
1 point
10. In reviewing your account statement, you see a Balance Transfer Fee.
Based on the information you see in the statement, what would be the fee
if you transferred $3,000 from another credit card? *
Answer:
Find attached statement and the question which question number 10.
The correct option is C,$90
Explanation:
In the statement you would notice that the balance transfer from another credit card was $785,upon which balance transfer levy of $23.55 was charged(Section 7)
Intuitively, the percentage of balance transfer charge is $23.55 divided by the amount of balance transfer i.e $785
balance transfer charge(%)=$23.55/$785=3%
However, if the balance transfer were $3000,the charge is 3% of $3000 i.e $90 ($3000*3%).
The correct option then is C,$90
if income elasticity of good x is negative, (eqx, m < 0), then good x is considered a(n) good.
If income elasticity of good X is negative, then good X is considered an inferior good. Inferior goods are those goods for which demand decreases as income increases. The concept of elasticity is significant in the field of economics as it shows how responsive demand and supply are to different factors such as price, income, and others.
If income elasticity of good X is negative, then good X is considered an inferior good. Inferior goods are those goods for which demand decreases as income increases. The concept of elasticity is significant in the field of economics as it shows how responsive demand and supply are to different factors such as price, income, and others.What is elasticity?Elasticity is the percentage change in one variable in response to a percentage change in another variable. In other words, it measures the responsiveness of one variable to the changes in another variable.Elasticity is categorized into three main types:Price Elasticity of Demand (PED): PED is the measure of how responsive the quantity demanded of a good is to a change in its price. When PED is greater than one, it is known as elastic, and when it is less than one, it is known as inelastic.Income Elasticity of Demand (YED): YED measures the responsiveness of the quantity demanded of a good to a change in income. If YED is greater than one, the good is a luxury good, and if it is less than one, it is an inferior good.Cross Elasticity of Demand (XED): XED measures the responsiveness of the quantity demanded of one good to a change in the price of another good. If XED is positive, the goods are substitutes, and if it is negative, the goods are complements.The question asks about income elasticity of good X. If income elasticity of good X is negative (Eqx, m < 0), it indicates that it is an inferior good. When income increases, the demand for inferior goods falls as consumers switch to higher-quality substitutes. Therefore, an inferior good has negative income elasticity, meaning the quantity demanded of an inferior good decreases as income increases. The answer is that if income elasticity of good X is negative, then good X is considered an inferior good.
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In which market would a producer sell bicycles to consumers?
In the markets for goods and services, a producer would sell his bike for purchase by customers.
What is the market for goods and services?Consumers buy consumables on the products and services market, and firms sell their commodities there. The market encompasses physical stores, the Internet, and any other location where consumers can exchange products and services.
The trading of finished goods takes place here. Businesses receive payment from customers in exchange for goods. The consumer gives money to the business in a flow. In contrast to this, enterprises can buy the materials they need on the factor market to make an item.
The rule of supply and demand governs how much is produced and at what price in the market for products and services.
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ASAP PLEASE-------------
Cameron has decided to diversify his investments in the following way:
$3,000 in an account earning 2.7% simple interest
$5,000 in a savings account earning 1.8% interest compounded annually
$5,000 in a certificate of deposit earning 3.9% interest compounded quarterly
How much total interest will Cameron earn on his investments at the end of 3 years?
a. $530.87
b. $665.57
c. $973.30
d. $1,135.30
Anyone know how to do this?
Answer:
D.) $1,135.30 at the end of 3 years
Explanation:
First method:
Formula for simple interest is I = P * R * T.
In this instance P = 3,000, R = 2.7, T = 5.
\(I=(3000)(0.027)(5)\\= $405\)
Second method:
The formula for annual compounding is \(A=P(1+r)^t\), where A = amount, P = principal (initial) amount, r = rate of growth, t = years.
\(A=5000(1+0.027)^3\)
=\(5416.0334\)
Third method:
The formula for periods within a year is \(A=P(1+\frac{r}{n})^n^t\). There is now the added value of n (number of periods per year). Since there are 3 quarters per year, n will be 4.
\(A=5000(1+\frac{0.039}{4})^4^*^3\\=5000(1.00975)^1^2\\= 5617.4129\)
Sum after 3 years is $1,135.30
Only this type of foq model pays attention to total annual setup cost? group of answer choices all of them basic foq foq with usage foq with uncertain demand.
The type of foq model that pays attention to total annual setup cost includes:
Basic FOQFOQ with UsageFOQ with Uncertain DemandTherefore, the Option A is correct.
What is the meaning of foq model?Also known as a Fixed Order Quantity, refers to an inventory management system in which replenishment stock is ordered when the stock reaches a reorder point and the replenishment quantity is kept fixed irrespective of external circumstances.
In conclusion, the Fixed Order Quantity tells us when to order and how much to order.
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Factors that decrease the demand for bonds include.
A factor that will decrease the demand for bonds is a decrease in the riskiness of stocks.
What are bonds?A bond is a debt instrument used by companies to raise capital. Bondholders are paid interest at regular intervals at a predetermined rate.
Stocks offer a higher rate of return than bonds but stocks are usually more risky. If the riskiness of stocks decline, the demand for stocks will increase and the demand for bonds will decrease.
Here are the options:
A) an increase in the volatility of stock prices.
B) a decrease in the expected returns on stocks.
C) a decrease in the inflation rate.
D) a decrease in the riskiness of stocks.
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When a defense company needed to create quality software, they brought representatives from the Quality Assurance (QA) group in to work with software and systems engineers. The QA group found that peer reviews were the best way to catch software bugs, and they shared their knowledge with the head of software engineering. Working together with the engineers, the QA group started a system of peer reviews and formal inspections, and together, the group decreased the number of problems in the software the company produced.
While a protection employer had to create quality software programs, they delivered representatives from the high-quality guarantee (QA) institution to paintings with software program and structures engineers.
Software pleasant is defined as a field of study and exercise that describes the appropriate attributes of software program products. There are principal techniques for software program satisfaction: defect management and first-rate attributes.
The first-class software program is fairly computer virus or illness unfastened, delivered on time and inside finances, meets requirements and/or expectancies, and is maintainable. ISO 8402-1986 well-known defines excellent as “the totality of functions and traits of a product or services that bear its potential to fulfill said or implied needs.”
The software program is software that has fewer bugs (and a shorter tail of solving the last problems). There are a group of different such things as code clarity, maintainability, debugability, and so forth which could without problems be swept under the nice umbrella.
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The impact of discrimination behaviour to an individual
Answer:
Discrimination affects people's opportunities, their well-being, and their sense of agency. Persistent exposure to discrimination can lead individuals to internalize the prejudice or stigma that is directed against them, manifesting in shame, low self-esteem, fear and stress, as well as poor health.
Explanation:
List down possible career opportunities in the following career areas in TLE (at least 5 for each) a) Agriculture b) Horticulture c) Handicrafts d) Cookery
These are just a few examples of the many jobs available at TLE. He holds a variety of management and consulting roles for those interested in agriculture and horticulture, agriculture, marketing and agricultural research
a) Agriculture:
1. Agricultural Scientist
2. Crop Production Manager
3. Livestock Business Manager
4. Agricultural Economist
5.Agricultural Consultant
b) Gardening:
1. Gardener
2. Landscape Architect
3. Nursery Manager
4. Arborist
5.
Glass Blower
d) Cookery:
1. Cook
2. Catering Manager
3. Restaurant Owner/Manager
4. Catering Manager
5.Pastry Chef
Crafts offer design and art for people who love to design and craft, while cooking has many roles in the food industry, from chefs to restaurant managers to rice and owners. There are also many opportunities for entrepreneurs and business owners in each of these sectors. With increasing emphasis on sustainability and local production, these areas are likely to continue to grow and evolve, offering more opportunities for TLE enthusiasts.
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Which is a good rule to follow when sending business emails? (1 point)
Answer:
Avoid forwarding spam and unnecessary messages such as chain letters.
Explanation: did the test
The good rule that must follow at the time of sending business emails is to avoid forwarding spam and unwanted texts like chain letters.
What is email?An email, is also called as the electronic mail. It is one of the most extensively employed features of the Internet, that is mostly used in the formal business organizations.
It allows a person to transport and acquire messages from nay person in the globe that has an email account. Within the TCP/IP suite, email uses a variety of protocols.
When sending business emails, a good tip to follow is to avoid forwarding spam and undesirable texts like chain letters.
Therefore, the use of formal languages and proper formats made the emails more accurate.
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pernell company reported lifo reserves of $150,000 and $100,000 in year 2 and year 1, respectively. the company utilized the fifo assumption for internal purposes. based on this information, we can conclude that pernell's pretax income for the year 2 fiscal year would have been multiple choice question. $150,000 higher if it had used fifo. $150,000 lower if it had used fifo. $50,000 higher if it had used fifo. $50,000 lower if it had used fifo.
If Pernell had used FIFO instead of LIFO, their pretax income would have been higher by the amount of the increase in LIFO reserve, which is $50,000.
LIFO, which stands for "Last In, First Out," is a method of inventory or asset valuation commonly used in accounting and finance. It follows the principle that the most recently acquired or produced items are the first to be sold or used. Under LIFO, the cost of goods sold (COGS) is calculated by assuming that the last items added to the inventory are the first ones to be sold.
This implies that the cost of those recently acquired items is matched against the revenue generated, potentially resulting in a higher cost of goods sold and lower profits compared to other inventory valuation methods. LIFO is often favored in situations where prices are rising because it allows businesses to report lower taxable income by assigning higher costs to goods sold. This can be advantageous for tax purposes as it can help defer tax payments.
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employees within a bureaucratic agency who are tasked with auditing institutional activities are called
Bureaucrats are employees of major administrative systems. When you dislike of officials because you believe they adhere to policies and procedures too rigidly, you may refer to them as bureaucrats. [disapproval] Bureaucrats still have influence over the economy.
A bureaucratic boss is what?The bureaucrat is a boss who enjoys busywork, regulations, and paperwork. This boss will occasionally make up brand-new regulations on the spot just to have them in writing.Bureaucratic leadership: The management style known as bureaucratic leadership is characterized by a hierarchy and established official responsibilities. In this style of management, staff members are expected to abide by the particular guidelines and directives established by their superiors.All federal personnel are appointed by the executive branch, which also controls the bureaucracy.About 2,000 people can be appointed by the president to senior positions in the federal government. Political appointments are those folks.To Learn more about Bureaucrats refer to :
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Why is choosing an appropriate mortgage potentially even more important than
choosing an appropriate auto loan?
Here are five considerations to keep in mind as you compare vehicle loans to find the best deal: Annual Percentage Rate (APR) When searching for a car loan, your annual percentage rate, or APR, is a crucial consideration.
Monthly Payment, Loan Term, Loan Amount, Fees and Penalties, and Final Remarks.
You wish to drive a modern car that you won't be able to pay for without financing in a fair amount of time. The moderate interest rate means that the additional costs won't have a big impact on the overall cost of the vehicle. The periodic payments won't put undue strain on your current or next finances.
This rule states that housing costs should not exceed 28% of one's gross monthly income and total debt service should not exceed 36%. This rule is frequently used by lenders to decide whether or not to offer borrowers credit.
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What must be done if a transaction increases the left side of the accounting equation?
Answer:
Explanation:
Neje
Assuming two companies have $40 in operating profit and one has interest expense of zero and one has interest expense of $10, what is the tax shield of debt assuming a 40% tax rate
Tax shield is a deduction from taxable income based on debt obligations, such as interest expenses. Assuming two companies have $40 in operating profit and one has interest expense of zero and one has interest expense of $10.
The tax shield of debt assuming a 40% tax rate is as follows:For the company that has interest expense of zero: Its taxable income equals its operating profit. So, the tax payable is 40% of its operating profit, which is $16.
The other company has an interest expense of $10. Its taxable income is $40 - $10 = $30. Its tax payable is 40% of $30, which is $12.So, the tax shield of debt is the difference between the tax payable of the company with no interest expense and the tax payable of the company with interest expense. Therefore, the tax shield of debt is $16 - $12 = $4. In other words, the tax shield of debt is the amount of money that the company with interest expense saved on taxes due to its interest expense.
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Under which method would cloud clients find it impossible to recover or access their own data if their cloud provider goes bankrupt?
Cloud clients would find it impossible to recover or access their own data if their cloud provider goes bankrupt under the "Encryption with No Recovery Key" method.
In the "Encryption with No Recovery Key" method, cloud providers encrypt client data using strong encryption algorithms, but they do not provide clients with a recovery key. This means that even if the clients have the encrypted data, they cannot decrypt and access it without the recovery key. In the event of the cloud provider going bankrupt, the recovery key is typically held by the provider, and without their cooperation or access to their systems, the clients are unable to recover their data.
The absence of a recovery key in this method ensures that the cloud provider has no access to the clients' decrypted data, which may be desirable for security and privacy reasons. However, it also means that clients become completely dependent on the provider for data recovery. In case of bankruptcy, the provider's assets and infrastructure may be seized or inaccessible, leaving clients without the means to retrieve their data. This situation highlights the importance of considering data recovery mechanisms and contractual agreements when selecting a cloud provider to mitigate the risks associated with potential provider bankruptcy.
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when the supreme court judges vote unanimously on a case, this usually indicates a _____ model of decision-making.
prepare a double entry ledger entries January 3 took out of the cash till$50 and put into the business by cheque Jan 4 the proprietor put a further$5000 in to business by cheque .please I need it quick
Explanation:
In the first entry, $50 is taken out of the cash till and put into the business as drawings. The effect is a decrease in the cash balance and an increase in the drawings account.
In the second entry, the proprietor puts a further $5000 into the business by cheque. The effect is an increase in the capital account and an increase in the bank balance.
It's important to note that "Drawings" and "Capital" are the accounts used to record the personal transactions of the business owner in this case, it is assumed that the business is a proprietorship. Other forms of business may have different accounts to record the personal transactions of the owne
accounts payable would appear on the balance sheet as a
Accounts payable would appear on the balance sheet as a **liability**.
Accounts payable is a liability account that represents the amount owed by a company to its creditors or suppliers for goods or services that have been received but not yet paid for. It is categorized as a current liability since it is expected to be settled within one year or the operating cycle of the business, whichever is longer.
On the balance sheet, liabilities are listed under the liabilities section, typically categorized as current liabilities and long-term liabilities. Accounts payable is included in the current liabilities section since it represents short-term obligations that need to be paid in the near future.
The balance sheet provides a snapshot of a company's financial position at a specific point in time, showing its assets, liabilities, and equity. Accounts payable, along with other liabilities, contributes to the overall financial obligations of the company and provides important information about its liquidity and financial health.
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Which of the following is true for services?
a) Service providers develop similar marketing programs for personal services and business services.
b) The client's presence is a hindrance during the service delivery process.
c) All service companies follow the same process to deliver their services.
d) Service providers can be either for-profit or nonprofit.
e) All services are people-based, while goods are equipment-based
The true statement about services is that all the service companies follow the same process to deliver their services.
What are service companies?Service companies means company that essentially performs tasks for the benefit of their customers and these some examples of their tasks includes transportation, cleaning, traveling, hospitality, maintenance etc.
Hence, in this question, the true statement is that all the service companies follow the same process to deliver their services for effective delivery.
Therefore, the Option C is correct.
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Which of the following is a goal of the FBLA-PBL?
A. Requiring all members to maintain straight A's
B. Facilitating the transition from school to work
C. Serving the needs of businesses above students
D. Discouraging school loyalty and scholarship
Answer:
b
Explanation:
Answer:
it's B facilitating the transition from school to work
Explanation:
just took the quiz
You expect to receive $30,000, at graduation, in two years. You plan on investing it, at 9%, until you have $150,000. How long will you wait from now?
Future Value( FV) is the value of current means at a future date grounded on an supposed growth rate. It'll take about4.587 years.
Given:
FV = PV(1 + r)*t
FV= 150,000
PV = 30,000
r= 9% or 0.09
t= ?
Therefore,
150,000 = 30,000 (1+0.09) *t, reversing the equation
30,000 (1+0.09) *t = 150,000
30000 *1.09*t = 150,000
32,700 t = 150,000
t = 150,000 / 32,700
t= 4.587 years
Future value and present value are related by the time value of the financial factor. It's important to know the applicable interest rate and the duration of the investment.
Fixed income compound present value is an estimate of unborn value, while blinked unborn value provides present value. unborn value is important to investors and fiscal itineraries because they use it to estimate the unborn value of an investment moment.
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Barbara Jones made an investment of $7,606.08. From this investment, she will receive $1,000 annually for the next 15 years starting one year from now. What rate of interest will Barbara's investment be earning for her? (Hint: Use Table 4.) (Round answer to 0 decimal places, e.g. 25\%.) Rate of interest %______
The rate of interest Barbara's investment will be earning for her is approximately -1.67%.
To determine the rate of interest that Barbara's investment will be earning, we can use the present value formula and solve for the interest rate. The formula is:
Present Value = Annual Cash Flow / (1 + interest rate)^n
Where:
Present Value = $7,606.08 (initial investment)
Annual Cash Flow = $1,000 (annual payment)
n = 15 (number of years)
Using Table 4, we can find the interest rate that corresponds to the present value factor for 15 years and a single payment factor of 1, which is the case here.
Looking up the present value factor for 15 years in Table 4, it is approximately 0.373.
Applying the formula,
$7,606.08 = $1,000 / (1 + interest rate)^15
Simplifying the equation:
(1 + interest rate)^15 = $1,000 / $7,606.08
(1 + interest rate)^15 = 0.1313
Taking the 15th root of both sides:
1 + interest rate = (0.1313)^(1/15)
1 + interest rate ≈ 0.9833
Subtracting 1 from both sides:
interest rate ≈ 0.9833 - 1
interest rate ≈ -0.0167
Converting the decimal to a percentage:
interest rate ≈ -1.67%
Therefore, the rate of interest Barbara's investment will be earning for her is approximately -1.67%. It's worth noting that the negative sign indicates that the investment is not earning a positive return but rather losing value.
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Suppose a company will issue new 20-year debt with a par value of $1,000 and a coupon rate of 8%, paid annually. The issue price will be $1,000. The tax rate is 35%. If the flotation cost is 2% of the issue proceeds, then what is the after-tax cost of debt? Disregard the tax shield from the amortization of flotation costs. Round your answer to two decimal places. % What if the flotation costs were 11% of the bond issue? Round your answer to two decimal places. %
Answer:
if the flotation costs were 2%, the after-tax cost of debt is 5.10%
if the flotation costs were 11%, the after-tax cost of debt is 4.63 %
Explanation:
After-tax cost of debt = Market Interest × ( 1 - tax rate)
Calculation of the Market Interest
Hint : Use the time value of money principles
Pv = -$1,000
Pmt = $1,000 × 8 % = $80
P/yr = 1
N = 20
Fv = $1,000
YTM = ?
Using a financial calculator, the market interest is 8%
After-tax cost of debt = Market Interest × ( 1 - tax rate)
= 0.08 × (1- 0.35)
= 0.052 or 5.20 %
If Flotation cost is 2%
Net Receipts after flotation cost = Cost × ( 1 - flotation rate)
= 5.20 % × (1-0.02)
= 5.096 % or 5.10% (two decimal places)
If Flotation cost is 11%
Net Receipts after flotation cost = Cost × ( 1 - flotation rate)
= 5.20 % × (1-0.11)
= 4.628 % or 4.63 % (two decimal places)
is there a relationship between productivity and months of service? draw the type of graph that can be used to analyze this problem.
There could potentially be a relationship between productivity and months of service.
It is possible that there is a relationship between productivity and months of service. As employees gain more experience and become more familiar with their job duties, they may become more efficient and productive. On the other hand, there may be a plateau where productivity levels off after a certain amount of time on the job.
To analyze this relationship, a scatter plot can be used. The horizontal axis would represent months of service and the vertical axis would represent productivity. Each employee's data point would be plotted on the graph, with their months of service on the x-axis and their productivity score on the y-axis.
If there is a positive relationship between productivity and months of service, the data points would form an upward-sloping line. If there is a negative relationship, the line would slope downwards. If there is no relationship, the data points would be scattered randomly across the graph.
Once the graph is plotted, additional analysis can be performed to determine the strength and direction of the relationship, such as calculating the correlation coefficient. This information can be useful for decision-making related to employee training and development, performance evaluations, and staffing decisions.
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Sheldon has just successfully negotiated a new long-term sales agreement with a major client. The personal satisfaction Sheldon has about his efforts is his ________ reward.
external
extrinsic
intrinsic
reciprocal
Option (c), The personal satisfaction Sheldon has about his efforts is his intrinsic reward.
An intrinsic reward refers to the personal satisfaction or enjoyment that an individual experiences from completing a task or achieving a goal. It comes from within oneself and is not dependent on external factors such as money or recognition. In Sheldon's case, his satisfaction from successfully negotiating a new long-term sales agreement with a major client is his intrinsic reward. This type of reward can often be more powerful and long-lasting than external rewards because it taps into a person's sense of purpose and motivation.
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Income received by households through the lending of their money to corporations and business firms is an example of
income.
Answer:
Interest / Dividend Income
Explanation:
Answer:
Answer for EDGE is C or Interest
Explanation:
For the week, Emma had originally selected 8 intervals. The interval that she put up for swap was not
picked up, nor did she show up to service it. Her technical issue had also prevented her from servicing for
45 minutes. Emma was also 5 minutes late for two other intervals. What was Emma’s resulting CA
percentage for the week (rounded to nearest whole number)?
Emma's resulting CA (Customer Availability) percentage for the week, rounded to the nearest whole number, is **81%**.
To calculate Emma's CA percentage, we need to consider the total number of intervals she was supposed to service and deduct the intervals that were not picked up, the intervals she did not show up for, and the total time she was late.
Emma originally selected 8 intervals. However, one interval was not picked up, and she did not show up to service it. Additionally, she was 5 minutes late for two other intervals. So, we deduct 1 interval for not being picked up, 1 interval for not showing up, and 10 minutes (5 minutes for each late interval) from the total available time.
Total intervals: 8
Deducted intervals: 1 (not picked up) + 1 (not shown up) = 2
Deducted time: 10 minutes (5 minutes late for two intervals)
Available intervals: 8 - 2 = 6
Available time: 60 minutes - 10 minutes = 50 minutes
Emma's resulting CA percentage: (Available time / Total time) * 100 = (50 minutes / 60 minutes) * 100 = 83.33%
Rounded to the nearest whole number, Emma's resulting CA percentage is 81%.
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Mouse Inc. uses the alternative method of accounting for prepayments and purchased a $1,200, 6-month insurance policy. The company immediately debited the Insurance expense account. By the end of the period, $400 of the policy had expired. Demonstrate the required adjustment needed at the end of the period.
a) Credit Prepaid insurance $800.
b) Debit Prepaid insurance $800.
c) Debit Insurance expense $400.
d) Debit Prepaid insurance for $400.
Based on the amount of the policy that has expired, Mouse Inc. should b) Debit Prepaid insurance $800.
Why should this be done?
When prepayments such as these are made, they should be sent to the prepaid account. At the end of the period, the balance in the prepaid account should reflect expenses that have been paid for, but not yet incurred.
At the end of this period therefore, the prepaid expenses should be debited for $800 which is the amount of insurance that is yet to be used.
In conclusion, option B is correct.
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