FIGURE 19-3 Prepaid Insurance and related accounts Prepaid insurance Insurance expense Beginning balance Current period Insurance expense (1) Acquisitions Insurance premiums Ending balance 1)Acquisitions of insurance premiums arise from the acquisition and payment cycle This can be observed by examining Figure 18-1(P. 583) Arens, Loebbecke; Auditing, &/E @2000Prentice HalL,IncArens, Loebbecke; Auditing, 8/E ©2000 Prentice Hall, Inc. FIGURE 19 -3 Prepaid Insurance and Related Accounts