All of the following are true about insurance companies EXCEPT
A) They invest their reserves.
B) They may guarantee to reimburse lenders should lenders' loans go into default.
C) They participate in equipment leasing.
D) They may only invest their reserves in interest paying bank accounts under Federal law.
Answer: D
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For prepaid expense adjusting entries
A. an expense liability account relationship exists B. prior to adjustment, expenses are overstated and assets are understated C. the adjusting entry results in a debit to an expense account and a credit to an asset account D. none of these
A capital improvement to real property will always:
a. increase the book value of the property by the amount the appraised value is increased. b. increase the book value of the property by the cost of the improvement. c. increase the property's market value by the cost of the improvement. d. be fully depreciated in the year the improvement is made.