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On July 1, 20x8, Hathaway Ltd. purchased a 4 year insurance policy and paid a...

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Accounting

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On July 1, 20x8, Hathaway Ltd. purchased a 4 year insurance policy and paid a premium of $37570. Hathaway has a December 31 year end. Which of the following statements is true? of Select one: a. Under cash basis accounting, there will be a balance of $23481 in the Prepaid insurance account on December 31, 20x9 b. Under accrual accounting, there will be a balance of $32874 in the Prepaid insurance account on December 31, 20x8 c. Under cash basis accounting, the insurance expense for the period ending December 20x8 will be $4696 d. Under accrual accounting, there will be a balance of $18785 in the Prepaid insurance account on December 31, 20x9 Check

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