Choice "A" is correct. This is not an example of management bias because at the end of the period the financial statements are fairly presented. Unexpired insurance should be reported as prepaid insurance. This is a correct application of the matching principle.
Choice "b" is incorrect. The identification by management of additional adjusting entries that offset the misstatements accumulated by the auditor is an example of management bias.
Choice "c" is incorrect. Selective correction of misstatements brought to management’s attention during the audit is an example of management bias.
Choice "d" is incorrect. Management decreasing the allowance for doubtful accounts when there has been no change in the level of write-offs during the period is an example of management bias in accounting estimates.