Red onion restaurant would classify a six-month prepaid insurance policy as: (a) property, plant, and equipment.
(b) goodwill.
(c) investment.
(d) current asset.

Current asset

Explanation: In simple words, current asset refers to those assets of the organisation which are expected to be used and converted into cash within a period of one year.

These assets are usually purchased or prepared by the organisation to efficiently conduct their operating activities. Such assets are generally consumed within the process in which they are expected to be used.

Inventory, cash and accounts receivable ear some of the many examples of current assets. In the given case, the prepaid policy will also be consumed within a year.

Hence we can conclude that the policy is a current asset.

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