Fink Insurance collected premiums of $18,000,000 from its customers during the current year. The adjusted balance in the Unearned premiums account increased from $6 million to $8 million dollars during the year. What is Fink's revenue from earned insurance premiums for the current year?
A)$10,000,000.
B)$16,000,000.
C)$18,000,000.
D)$20,000,000.

Question

Quizplus · Accepted Answer

To determine the revenue from earned insurance premiums, we need to calculate the amount of premiums actually earned during the year. This can be done by subtracting the ending balance of the Unearned premiums account ($8 million) from the beginning balance ($6 million), giving us $2 million in premiums that were earned during the year. Adding this to the amount of premiums collected from customers ($18 million), we get a total of $20 million in earned insurance premiums. Therefore, the correct answer is (B) $16,000,000.

Fink Insurance Collected Premiums of $18,000,000 from Its Customers During