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No, if Insurance premium is paid in advance then it is a Prepayment - current asset.

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โˆ™ 2010-03-27 04:14:29
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Q: Insurance premium paid in advance Is it a accrued expenses?
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Related questions

What is insurance premium paid in advance called?

Prepayment of the premium before it is due.

What are some examples of periodic expenses?

Example of periodic expenses are; Car insurance premium,property taxes, holiday expenses, expenses on certain seasonal activities.

What is the difference between out standing expense and prepaid expenses?

Outstanding Expenses are expenses which are due at a specific point of time for example if the actual date to pay the rent is 1st july and we don't pay the rent till august end, then it is called the outstanding Expenses (outstanding rent) prepaid Expenses are expenses which are paid in advance for example if we paid the premium of Insurance in advance i.e before due date, then it calls the prepaid expenses.

What is medical insurance premium?

"Insurance Premium" is a big word that basically means money. A premium is paid by the insured to cover a certain amount of time in order to cover expenses insured by the policy.

Distinguish between outstanding expenses and unexpired expenses?

Those expenses which have been paid in advance and whose benefit will be available in future are called unexpired or prepaid expenses. e.g. insurance premium The expenses remaining unpaid at the end of the accounting period are called outstanding expenses.Certainly expenses like salaries,rent etc. of the every month will be paid in the next months. By ADITYA (UPES)

What does personal accident insurance cover?

Personal accident insurance covers the insurance in case of an accident during working hours and leisure time. Accident insurance varies based on the premium, but it usually covers the hospital expenses and additional expenses.

What is the journal entry for advance insurance premium paid in cash?

prepaid insurance a/c..........dr. To insurance a/c

What is Advance Premium Deposit in Insurance Company?

An Advance Premium Deposit account is a feature of a policy offered by a Life Insurance company. Think of it as a savings account, where you're free to put in money and take out money. Your life insurance premium will automatically be paid from that account, so that's one less hassle you have to worry about. You get interest on your money, so that's nice. Often you're only allowed to deposit up to the sum of all future premiums. See for an example of one company's advance premium desposit account and read what they have to say about it.

What does insurance premium mean?

The premium is the cost that you must pay to have the insurance.

What is payment for insurance?

Payment of insurance is nothing but the premium paid towards the insurance policy. The premium amount includes the charge of coverage per unit (for example, the charge of coverage for $1000 might be $10. So, to have an insurance coverage for $10,000 the charge of coverage would be $100) plus the expenses incurred by the insurance company for the policy.

What is the difference between life insurance premium and non life insurance premium?

An insurance premium is the amount of money paid on a periodic basis for insurance of a given kind. The kind of insurance involved does not alter the definition of the term "premium". Therefore, a life insurance premium is an incremental amount paid for life insurance, and a non-life insurance premium is an incremental amount paid for another kind of insurance.

What is health insurance?

Health insurance is a type of insurance that covers medical expenses that arise due to an illness. These expenses could be related to hospitalization costs, cost of medicines, or doctor consultation fees.

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