Paid for one year's insurance policy.

A) Prepaid expense
B) Accrued expense
C) Unearned revenue
D) Accrued revenue
E) None of these choices

Prepaid Expense

Expenses paid in advance for goods or services, which are recorded as an asset until the service is consumed or the good is used.

Insurance Policy

A contract between the insurer and the policyholder specifying the terms under which the insurer agrees to compensate the policyholder for loss.

One Year

A period of time consisting of 12 months or 365 days, used as a standard measurement of time for financial, contractual, and planning purposes.