The type of account and normal balance of Prepaid Insurance would be
A) asset, credit
B) asset, debit
C) contra asset, credit
D) contra asset, debit

Question

Quizplus · Accepted Answer

Prepaid Insurance is an asset account, which represents the amount paid for insurance coverage that has not yet been used or expired. The normal balance of an asset account is a debit balance, as it represents something that the business owns or has paid for. Therefore, the correct answer is option B, asset and debit.

The Type of Account and Normal Balance of Prepaid Insurance