Insurance prepaid is shown as:___________?

Accounting Mcqs 29/12/2020

A. Current Asset
B. Current Liability
C. Fixed Asset
D. Income

Prepaid insurance is the expense relating to the next accounting period but has been
paid in the current accounting period and hence it is a current asset. The adjustment would be to
deduct it from the respective expense account in the P&L A/c and show it as a current asset in the
Balance Sheet.

Related Mcqs:

    Identify the correct sequence of accounting process
    A. Communicating→Recording→Identifying B. Recording→Communicating→Identifying C. Identifying→communicating→recording D. Identifying→recording→communicating...
    Office equipments account is classified as _________ account?
    A. Nominal B. Real C. Cash D. Capital...
    A chart of accounts generally start with which of the following types of accounts?
    A. Assets accounts B. liability accounts C. Cash accounts D. Revenue accounts...
    Carriage on goods purchased is shown in:___________?
    A. Profit and Loss A/c B. Capitalized with work in progress C. Trading A/c D. Shown in Balance Sheet...
    A worker has a time rate of 15/hr. He makes 720 units of component (standard time : 5 minutes/ unit) in a week of 48 hours. His total wages including Rowan bonus for the week is
    A. 792 B. 820 C. 840 D. 864...

Leave a Reply

Your email address will not be published. Required fields are marked *