Prepaid Insurance Account is ___ Account.

A. Real

B. Personal

C. Nominal

D. None

Details: 

A nominal account is a general ledger account that you close at the end of each accounting year. Basically, you store accounting transactions in a nominal account for one fiscal year. At the end of the fiscal year, you transfer the balances in the account to a permanent account. Prepaid insurance is the portion of an insurance premium that has been paid in advance and has not expired as of the date of a company's balance sheet. This unexpired cost is reported in the current asset account Prepaid Insurance.


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