On july 1, a company paid the $4,800 premium on a one-year insurance policy with benefits beginning on that date. what will be the insurance expense on the annual income statement for the first year ended december 31?

$2,400

Explanation:

First divide $4,800 by 12 = $400 per month. Since the company paid the insurance premium on July 1, it must recognize $2,400 (= $400 x 6) as insurance expense for the July - December period. The remaining $2,400 must be recorded under the Prepaid Insurance account which is an asset account in the balance sheet.

cognitive overload: having a lot on your mind impairs decision-making and tends to result in the simplest, but not necessarily best, option being selected.

empathy gaps: overlooking how you might feel in a different situation can result in unnecessary purchases, such as overbuying when shopping for food on an empty stomach.

optimism and overconfidence: wearing rose-tinted glasses and having unrealistic expectations about the future can affect money management and leave you unprepared for a change in circumstance.

instant gratification: seeking instant gratification drives impulsive spending and can undermine long-term planning and savings.

harmful habits: automatic or mindless behaviour can amplify a poor financial decision as it becomes a recurring event.

social norms: we are heavily influenced by the actions of others; while this can be in certain circumstances, it also contributes to the pressure to keep up with the joneses through conspicuous consumption.

c, theres a double tax on the business earnings