What type of account is prepaid insurance?
A) Liability
B) Income
C) Expense
D) Asset

Name: What type of account is prepaid insurance? A) Liability B) Income C) Expense D) Asset
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Question

Quizplus · Accepted Answer

Prepaid insurance is an asset account because the company has already paid for the insurance coverage, but the coverage has not yet been used or expired. It represents a future economic benefit for the company, so it is classified as an asset on the balance sheet.

What Type of Account Is Prepaid Insurance