Question

Question 1 16 pts A company often pays insurance that will provide the company insurance coverage for 6 months or longer. When the company pays for the insurance, the account that is debited is called a prepaid expense. This is an asset, not an expense. Why? It is the same as cash It will benefit the company in future periods, and therefore has not been used up It has been used up and should be an expense Question 2 17 pts AT account always has a left side and a right side A Debit side and a credit side An increase side and a decrease side All of the above

Answer 1

Answer

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