6 min read
Is Prepaid Insurance an Asset? Accounting Says Yes
6 min readPrepaid insurance refers to insurance premiums paid in advance, creating a current asset for your business.This upfront payment provides future economic benefits and improves cash flow management.Accountants systematically convert prepaid insurance to an expense as the coverage period elapses.Proper classification as a current or non-current asset depends on the policy’s duration.Understanding the impact […]Continue reading "Is Prepaid Insurance an Asset? Accounting Says Yes"