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Shirley Scholten
on Oct 16, 2024

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If insurance coverage for the next two years is paid for in advance,the amount of the payment is debited to an asset account called Prepaid Insurance.

Prepaid Insurance

An asset account that reflects payments made for insurance services before the coverage period.

Asset Account

A record in the financial statements that shows the value of a company's assets, including current, fixed, tangible, and intangible assets.

  • Comprehend how transactions impact asset, liability, and equity balances.
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KATHERINE VOGT-SHIELDSOct 20, 2024
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