It’s Which Of The Following Entries Records The Payment Of Insurance For The Current Month? the middle of the month, and you have to pay your insurance bills. Which of the following entries records the payment of insurance for the current month? A. Insurance paid B. Payment received for insurance C. Policy renewed C. Policy renewed
January
Insurance for the current month was paid on January 1st.
February
This blog is about personal finance. I recently had to ask my parents for help with something important, and as a result, I’ve been thinking a lot about money. Which of the following entries records the payment of insurance for the current month?
One option is that the entry that records the payment of insurance would be the one that shows the insurance premium being paid. Another option is that it would be the one with an account balance showing a deduction for the amount paid in premiums.
March
The entry “Insurance paid for the current month” records the payment of insurance for the current month.
April
The insurance payment for April was recorded on the 10th.
May
The entry that records the payment of insurance for the current month is “May.”
June
The payment of insurance for the current month is recorded in the entry for June.
July
Insurance for the month of July was paid on July 15th.
August
The entry “Insurance paid for the month of August” records the payment of insurance for the current month.
September
On September 1st, the insurance company paid for the month.
October
In the United States, most insurance is paid in advance. This means that the company pays the bill before the policyholder does. For example, if someone has a car insurance policy with a $100 deductible, the company would pay for the damages before the policyholder pays anything.
This differs from many other countries where people generally pay for their insurance as they use it. In this case, if someone has a $100 car insurance deductible and gets into a car accident, they would have to pay $100 out of their own pocket before their policy would cover anything.
There are a few exceptions to this rule – namely life insurance policies which usually have no deductible and health insurance policies which have lower deductibles (usually capped at around $200). October is traditionally when people pay their car insurance premiums in advance.
