A business pays $24,000 of insurance on 1 October for the twelve months to 30 September. At its 31 December year end, what does the matching concept require?

Q: How do I try a free CXC CAPE Accounting question?

Just tap any of the four options on this page — no signup, no card, nothing to install. You'll see the correct answer and a full mark-scheme-style explanation within a second. Each visit shows a fresh randomly-picked question from the live CXC CAPE CSEC Accounting bank, so you can keep refreshing to try different ones before deciding whether to create a free account for daily access.

Q: Is Kramizo really free for CXC CAPE Accounting students?

Yes — completely free. Every student gets 45 questions a day on the free plan, across any board and any subject, with no card required and no trial countdown. Kramizo's optional Pro plan removes the daily cap and adds analytics, but the free plan is genuinely free forever. We make money from the small percentage of students who choose to upgrade — not from selling data or ads.

Q: Are the Accounting questions aligned to the CXC CAPE CSEC syllabus?

Every question is written against the published CXC CAPE CSEC Accounting syllabus and reviewed for accuracy before being added to the bank. We match the command words (state, describe, explain, evaluate), mark allocations, and difficulty tier you'll see on real CXC CAPE past papers. Explanations are written in the style of official examiner mark schemes so students learn exactly what marks are being awarded for.

Question

A business pays $24,000 of insurance on 1 October for the twelve months to 30 September. At its 31 December year end, what does the matching concept require?

Accepted Answer

$6,000 charged as expense and $18,000 carried forward as a prepayment — Award 1 mark. Three of the twelve months have been consumed by 31 December, so 3/12 × $24,000 = $6,000 is the cost of this year and the remaining $18,000 is an asset.

Answer

$18,000 charged as expense and $6,000 carried forward as a prepayment

Answer

$6,000 charged as expense and $18,000 carried forward as a prepayment

Answer

$24,000 charged as expense because the cash has been paid

Answer

Nothing charged, because the policy period has not ended

One real Accounting question.No signup. 30 seconds.

One real Accounting question.
No signup. 30 seconds.