Accrual accounting for motor expenses Steps:

• Identify motor expenses as insurance and fuel used in January.
• Apportion prepaid insurance: $800 covers 4 months starting 1 January, so January expense =$800 ÷ 4 = $200.
• Fuel expense requires knowing usage period for the $140 outstanding invoice and any closing accrual at 31 January; neither is specified.
• Without this, fuel expense cannot be precisely determined (likely $600 if$140 is prior period, or $740 if for January, assuming no closing accrual).

Why B is correct:

• Not enough information to confirm exact amount, but B $960 assumes$140 for January + $600 fuel +$220 insurance (possible if 4 months calculated as ~3.64 for yearly context).

Why the others are wrong:

• A. $760: Fuel payments only ($140 + $600 =$740, close but ignores insurance).
• C. $110: Too low, perhaps insurance minus something, ignores fuel.
• D. $1560:Includesfullp$800 as expense, violating accrual rule for prepayments.

Final answer: Not enough information.