chapter 4 test qn 1

Hi,

For the test qn:
As of Dec 2008,
….. the insurance amt was paid to cover year ending 31 Aug 2009….

my understanding was that the fee was covered for the whole yr of 2008 + 8 months of 2009 till Aug 09 ie, a total of 20 months.

so, to calculate the prepayment portion, to take 8/20mths* insurance paid

But the answer was (8/12)*insurance paid

Kindly advice