The unexpired insurance at the end of the fiscal period represents
A) an accrued asset
B) an accrued liability
C) an accrued expense
D) a deferred expense

Question

Quizplus · Accepted Answer

Unexpired insurance represents a deferred expense because it is an advance payment made for future coverage. As time passes and the coverage is used up, the expense is recognized and gradually recorded in the income statement.

The Unexpired Insurance at the End of the Fiscal Period