GB 518 Course Great Wisdom / tutorialrank.com GB 518 Course Great Wisdom / tutorialrank.com | Page 9

Fiscal cycle

Natural business year

Accounting period

Business cycle

Operating cycle

Question 15. Question :
On April 30, 2011, a three-year
insurance policy was purchased for $18,000 with coverage to begin
immediately. What is the amount of insurance expense that would
appear on the company's income statement for the year ended
December 31, 2011?

$500