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Is prepaid insurance an asset?
yes
Is prepaid insurance a current asset?
yes, it is
What does an asset expense relationship exist with?
prepaid expense adjusting entries
Is an owners life insurance an asset or a liability?
Asset.
Is insurance a asset or liabilty?
Insurance can actually cannot be considered as an asset or a liability.. Infact Insurance is there to protect your asset for future needs and save you from financial crisis.. It reduces all the losses ocuured on any particular event..
Is prepaid insurance a current asset or fixed asset?
Current Asset
Is prepaid insurance an asset?
yes
Is insurance expense an asset or liability?
Prepaid insurance would be an asset. Insurance expense is when the insurance has been used up, thus making it an actual expense on the Income Statement. Whereas Prepaid Insurance on a Balance sheet is classified as an Asset.
Is prepaid insurance a current asset?
yes, it is
What type of account is Prepaid Insurance?
Prepaid insurance is personal nature of account and amount in it is shown as current asset in balance sheet.
Is Prepaid insurance expense an asset?
Yes. All prepaid items go in current assets until they are used and transferred to the profit and loss.
Is Prepaid insurance is an asset account?
Prepaid insurance is that amount which is paid in advance for future insurance so until actual insurance facility is availed by company it is an asset of company and if it is for short term or will be availed in current fiscal year then it is current asset otherwise a fixed asset, if some portion is usable in current fiscal year then only that portion will be current asset and remaining will be fixed asset.
Is prepaid insurance a debit or credit balance?
Prepaid insurance is that amount which is paid in advance and no benefit has taken yet that's why it is current asset for business.
Is unexpired insurance an asset?
Yes. Unexpired insurance, or prepaid insurance, represents value to the business since it has utility and is owned by the business (the company has claim to the policy). Therefore by definition, unexpired insurance is an asset.
What is the difference between prepaid insurance and insurance expense?
When payment for insurance is made advance of actual expenses then it is called prepaid insurance which is asset for business until insurance benefit is utilized while insurance expense is actual insurance expense when insurance benefit is taken.
Why there is decreasing in cash while increasing in prepaid expense?
The decrease in cash is likely due to the prepayment of expenses, where cash is used to pay for future expenses in advance. This leads to an increase in prepaid expenses on the balance sheet as the expenses are prepaid but not yet incurred. Over time, as the prepaid expenses are used up, they are expensed and cash balances will start to increase again.
Does prepaid insurance carry a credit or debit balance?
Prepaid insurance is amount paid in advance that's why it is an asset of business and like all other assets accounts it also has debit balance as normal balance.
