A company prepays for 6 months of insurance. What effect does this have on their current assets?

Question

a. No Change

b. Increase

c. Decrease

d. Varies depending on how they paid

FITAH MOHAMED · Answer

a. No Change ...........................................

Anas Touqan · Answer

a. No Change ,,,,,,,,,,,,,,,,,,,,,

هيثم ناجى · Answer

mr ahmed dawoud 's answer is correct

the right answer ia A no changes

Ahmed Dawoud · Answer

Answer is (A) No change

Prepaid expense belong to an current asset

However paid via Bank or cash both belong also to current assets

So no change will effect current asset

Muhammad Zeshan Mustafa · Answer

There will be no change

Deleted user · Answer

don't effect that means No Change.............................

Toyin Adun-FCA-MBA-Finance-CMA · Answer

A. There will be no change. Cash will reduce and prepayments will increase proportionately. Both are current assets.

Muhammad Rizwan · Answer

Option A: No Change in current assets.

Prepaid Insurance (Current Asset) Dr.

Cash Cr.

abdelaziz allam · Answer

cash is current asset and this case it will decrease

renju padinjattukara · Answer

No Change, cash and Bank are current assets

Yehia Gouda · Answer

In this case the current assets will be increased .