Final answer:
True, prepaid insurance and supplies are assets because they provide economic benefits extending beyond a single month as they are future resources that benefit the company.
Step-by-step explanation:
The statement "Prepaid insurance and supplies are assets because they will provide benefits for more than one month" is true. In accounting, an asset is defined as a resource owned or controlled by a company that is expected to provide future economic benefits.
Prepaid insurance is considered an asset because it represents a payment made for insurance coverage that will extend beyond the current month, providing benefits in the form of risk protection for future periods. Similarly, supplies on hand are also counted as assets; they are tangible items that will be used in future business operations, thereby bringing future economic benefits to the company.