If prepaid insurance expires over time,this asset account becomes a(n):

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Prepaid insurance is an asset account because it represents an advance payment for insurance coverage. As time passes, the insurance coverage is used up and the asset is no longer prepaid. Therefore, the prepaid insurance account is gradually reduced and transferred to the expense account, which is recorded on the income statement. This means that prepaid insurance becomes an expense over time, as it is used up.

If Prepaid Insurance Expires Over Time,this Asset Account Becomes A(n)