What Type of Account Is Prepaid Insurance

question 14

Multiple Choice

What type of account is prepaid insurance?

• A)An asset
• B)A liability
• C)An expense
• D)Stockholders' equity

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Definitions:

Res Ipsa Loquitur

Latin, meaning “the thing speaks for itself,” which is also known as the doctrine of common knowledge.

Respondeat Superior

Latin, meaning “let the master answer,” a doctrine under which an employer is legally liable for the acts of his or her employees, if such acts were performed within the scope of the employee’s duties.

Duces Tecum

a court order that requires an individual to produce documents or records for a legal proceeding.