Prepaid insurance is reported on the balance sheet as a

fixed asset
current asset
long-term liability
current liability

Solutions

Expert Solution

Prepaid insurance means insurance amount paid in advance but not in due to pay. Prepaid insurance is current asset and it should be shown in balance sheet under Assets side. Insurance premium paid in advance, hence it should be recorded as current asset in balance sheet.

B - Current asset

Dr. OWL answered 3 years ago

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