A business uses the calendar year for its fiscal year. On March 10th, it buys six months of liability insurance that will go into effect on April 1st. This should be listed in the books as a prepaid expense.

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The Answer of A business uses the calendar year for its fiscal year. On March 10th, it buys six months of liability insurance that will go into effect on April 1st. This should be listed in the books as a prepaid expense.

A Business Uses the Calendar Year for Its Fiscal Year