Which of the following assets is most likely reported at its historical cost on the balance sheet?
A)short-term investments
B)merchandise inventory
C)net accounts receivable
D)prepaid insurance

Question

Quizplus · Accepted Answer

Prepaid insurance is typically reported at its historical cost on the balance sheet. This is because it represents payments made in advance for insurance coverage, reflecting the actual amount paid rather than a fair market value or an adjusted cost.

Which of the Following Assets Is Most Likely Reported at Its