On the balance sheet, insurance would be listed a(n)
A) marketable security.
B) fixed liability.
C) one-time expense.
D) prepaid expense.
E) fixed expense.

Question

Quizplus · Accepted Answer

Insurance paid in advance is considered a prepaid expense on the balance sheet. This is because it represents a payment made for a future benefit, thus it is recorded as an asset until the benefit is received or the term of the insurance coverage expires.

On the Balance Sheet, Insurance Would Be Listed A(n)