The cost of insurance is considered an expense:
A)Only when the entire policy period has passed.
B)Only when the policy is purchased.
C)Only when the premium is paid.
D)Evenly over the term of the policy.

Question

Quizplus · Accepted Answer

The cost of insurance is not considered an expense only when the entire policy period has passed or only when the policy is purchased or only when the premium is paid. The cost of insurance is spread evenly over the term of the policy, which is why option D is the correct choice.

The Cost of Insurance Is Considered an Expense