If the total amount that should have been debited to Insurance Expense is mistakenly debited instead to Prepaid Insurance,what will be the effect on the financial statements for the year?

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If the total amount that should have been debited to Insurance Expense is mistakenly debited instead to Prepaid Insurance, it will result in an overstatement of assets as Prepaid Insurance is an asset account. This error will not affect the revenues, expenses or stockholders' equity accounts.

If the Total Amount That Should Have Been Debited to Insurance