Question

Which of the following is classified as an asset​ account?A.Notes PayableB.​Owner, WithdrawalsC.Prepaid InsuranceD.Unearned Revenue

Answer 1

Answer:

C.Prepaid Insurance

Explanation:

Prepaid Insurance is the insurance amount paid in advance, so that company has a receivable because amount is not due yet. It will charged to expense account with the passage of time. Notes Payable, Unearned Revenue, ​Owner Withdrawals are classified as liabilities and capital contra accounts. So correct option is C. Prepaid Insurance.