Asked by
Anna-Brooke Taylor
on Nov 18, 2024
Verified
What is the posting reference that will be found in the prepaid insurance account?
A) 11
B) 15
C) 3
D) 13
Prepaid Insurance
An expense paid in advance for insurance coverage, recorded as a current asset on the balance sheet until the coverage period elapses.
Posting Reference
A code or number used in ledger accounts that links journal entries to the specific accounts affected, facilitating traceability and audit processes.
Journal
A journal in accounting refers to a detailed record of all the financial transactions of a business, showing the debits and credits for each transaction.
- Understand the technique of noting and posting financial activities in account records.
- Gain insight into the significance and layout of the chart of accounts.
Verified Answer
ER
Learning Objectives
- Understand the technique of noting and posting financial activities in account records.
- Gain insight into the significance and layout of the chart of accounts.