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What is prepaid insurance?

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Question ajoutée par Shameer Nazir Madari , Assistant Finance Manager , METAL AND RECYCLING COMPANY K.S.C. (PUBLIC)
Date de publication: 2016/04/27
subramani subramani poonul
par subramani subramani poonul , Senior medical coder , ALFARHAN MEDICAL CENTER

A current asset which indicates the cost of theinsurance contract (premiums) that have been paid in advance. It represents the amount that has been paid but has not yet expired as of the balance sheet date. A related account is Insurance Expense, which appears on the income statement.

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