Which of the following statements is false?
A)Prepaid insurance is a liability reported on the balance sheet.
B)Prepaid insurance indicates that a company has already paid cash for insurance coverage that protects the company for some future time period.
C)Prepaid insurance is a deferred expense.
D)Prepaid insurance represents a future economic benefit.

Question

Quizplus · Accepted Answer

Prepaid insurance is not a liability, it is an asset reported on the balance sheet. It represents an advance payment for future insurance coverage, and therefore represents a future economic benefit.

Which of the Following Statements Is False