Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 28 - No. 17)
Which of the following accounts is affected when recognizing prepaid insurance expense?
Insurance Expense and Prepaid Insurance
Cash and Insurance Expense
Prepaid Insurance and Cash
Insurance Expense and Cash
Explanation
Prepaid insurance decreases over the life of the insurance coverage because it is consumed or used, and that reduction is recorded as insurance expense.
Comments (0)
