For the financial year 2017-18, which of the following is adjusted and considered as a prepaid expense? Options: A . &nbspInsurance premium paid for the period of 6 months commencing from 1st May 2017 B . &nbspInsurance premium paid for the period of 12 months commencing from 1st May 2017 C . &nbspInsurance premium paid for the period of 10 months commencing from 1st May 2017 D . &nbspNone of the above

For the financial year 2017-18, which of the following is adjusted and considere

Question

For the financial year 2017-18, which of the following is adjusted and considered as a prepaid expense?

Options:

A . Insurance premium paid for the period of 6 months commencing from 1st May 2017

B . Insurance premium paid for the period of 12 months commencing from 1st May 2017

C . Insurance premium paid for the period of 10 months commencing from 1st May 2017

D . None of the above

Answer: Option B
:
B
The insurance premium paid is from May'17 to May'18. So the premium pertaining to May'18will be considered as a prepaid expense in FY 2017-18

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