If a company fails to make an adjusting entry for deferred expense, the assets will be overstated. Assume the deferred expense is initially recorded as an asset

Which of the following statements is false regarding the application for life insurance?

A. When bound to the policy, applications become part of the entire contract. B. The name of the insured person must be indicated on the application. C. Answers to application questions are considered to be representations and not warranties. D. Before a policy can be issued or changed, the beneficiary must initial the application to indicate their approval.

Refer to LaGrow Developers. Assuming that LaGrow uses the installment sales method, in its December 31, 2016 balance sheet, the company would report ________

A) $3,000,000 net installment account receivable B) $4,000,000 net installment account receivable C) $2,600,000 net installment account receivable D) $5,000,000 net installment account receivable