Making insurance payments in advance is an example of:
A) An accrued receivable transaction.
B) An accrued liability transaction.
C) A deferred revenue transaction.
D) A prepaid expense transaction.

Question

Quizplus · Accepted Answer

Making insurance payments in advance is a type of prepaid expense transaction, where the payment made in advance is recorded as an asset on the balance sheet until the insurance coverage is received.

Making Insurance Payments in Advance Is an Example Of