A company prepays for 6 months of insurance. What effect does this have on their current assets?

a. No Change  ...........................................

 a. No Change ,,,,,,,,,,,,,,,,,,,,, 

mr ahmed dawoud 's answer is correct

the right answer ia A no changes

Answer is (A) No  change

Prepaid expense belong to an current asset 

However paid via Bank or cash both belong also to current assets 

So no change will effect current asset

There will be no change

don't effect that means No Change.............................

A. There will be no change. Cash will reduce and prepayments will increase proportionately. Both are current assets.

Option A: No Change in current assets.

Prepaid Insurance (Current Asset) Dr.

Cash        Cr.

cash is current asset and this case it will decrease

No Change, cash and Bank are current assets

In this case the current assets will be increased .