Prepaid insurance account is:

The correct answer is: C. an asset

A prepaid insurance account is an asset because it represents a future economic benefit that the company expects to receive. The company has paid for insurance coverage, and it will receive the benefits of that coverage in the future.

An expense is a cost that is incurred in the current period and that is not expected to provide future economic benefits. A revenue is an increase in assets or decrease in liabilities that results from the sale of goods or services to customers. A liability is a debt or obligation that a company owes to another party.

Here is a more detailed explanation of each option:

• Expense. An expense is a cost that is incurred in the current period and that is not expected to provide future economic benefits. For example, if a company purchases office supplies, the cost of those supplies would be an expense. The company would record the expense in the current period, and it would not expect to receive any future economic benefits from the office supplies.
• Revenue. A revenue is an increase in assets or decrease in liabilities that results from the sale of goods or services to customers. For example, if a company sells a product to a customer, the company would record the revenue in the current period. The company would increase its assets by the amount of the sale, and it would decrease its liabilities by the amount of the sale.
• Asset. An asset is a resource that a company owns and that is expected to provide future economic benefits. For example, a company may own a building, which is an asset. The company expects to receive future economic benefits from the building, such as rent payments from tenants.
• Liability. A liability is a debt or obligation that a company owes to another party. For example, a company may have a loan from a bank, which is a liability. The company is obligated to repay the loan to the bank.

I hope this explanation is helpful! Let me know if you have any other questions.