Match the type of account (a through e) with the business transactions that follow.
-Paid for one year's insurance policy.
A)Prepaid expense
B)Accrued expense
C)Unearned revenue
D)Accrued revenue
E)None of these choices

Question

Quizplus · Accepted Answer

When a company pays for an expense in advance, such as an insurance policy, it is considered a prepaid expense. This means that the expense has not yet been incurred, but will be over the course of the insurance coverage period.

Match the Type of Account (A Through E) with the Business