Question
At December 31, 2016, a company has a balance in its Prepaid Insurance account of $2,000. The insurance policy related to this $2,000 balance expires
At December 31, 2016, a company has a balance in its Prepaid Insurance account of $2,000. The insurance policy related to this $2,000 balance expires February 28, 2017 at which time the company will need to pay its premium again to continue coverage. In this example, the Prepaid Insurance account is reported as a long-term asset on the December 31, 2016 balance sheet.
True or False?
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Company Accounting
Authors: Ken Leo, John Hoggett, John Sweeting, Jennie Radford
8th Edition
0470819731, 978-0470819739
