Which of the following transactions are examples of prepayments that will require

Which of the following transactions are examples of prepayments that will require an adjustment at the end of the accounting period on December 31? (Select all that apply.)

B. A company pays a 6-month insurance premium at the beginning of October.

D. A company pays for 4 months of advertising in the Wall Street Journal on November 1.

Explanation:

B. A company pays a 6-month insurance premium at the beginning of October.

Record expenses for 3 months. Oct-nov-dec. Otrher 3 months are prepaid expenses.

D. A company pays for 4 months of advertising in the Wall Street Journal on November 1.

Record expenses for 2 months. Nov-Dec. Other 2 months are prepaid expenses.

Atnswer:

b. lifecycle fund

Explanation:

as from now to 2050 are still remaining 31 years, the money invested is able to go under different risk profiles, looking for getting the maximun return, the lifecycle fund is an excellent choice, it is because this kind of strategies changes according the risk of its costumer changes. it is expected to have during the first years a high exposition to risk such as equity or derivatives, and the more age of the costumer the lower risk profile, so the closer to 2050 the more expected investment into low risk assets, such as fixed income (this is made for having the less losses possible)