Prepaid insurance is an asset account shown on the balance sheet of a firm. It represents the insurance premium paid by a firm to the service... Learn more about this topic: Debit & Credit in Accounting | Meaning, Importance & Examples ...
What type of account is Prepaid Insurance? a. asset b. liability c. equity Accounts The financial activities of an organization are classified into different accounts. In order for the company to have an organize and accurate financial statements, they are named and categorized based ...
So, prepaid expenses are payments for purchases that will be consumedthroughout two or more accounting periods. An accounting period can be a month, a quarter, or a full fiscal year. These payments in advance can be forequipment, supplies, rent, insurance,and anything else the business pays ...
Anasseton abalance sheetthat comes about from a business making payment for a good or service it has not yet received, but will in the near future. Prepaid expenses areexpensedover time as the goods or services are received. A common example of a prepaid expense is aninsurance policy. Anot...
Recording a prepaid expense is a multi-step process. The expense will be debited as an asset in a prepaid account, such as insurance or rent. It will be credited for the same amount of the full expense in the cash account, from which the payment was drawn. ...
Expenses that represent goods or services delivered over a period of time,but which are paid in a lump sum at the beginning of that time period.If one paid $12,000 for an insurance premium on property for one year,that $12,000 would be entered on the accounting records as a $12,000...
Prepaid expenses are expenses like insurance and rent that are paid in advance, therefore before the expenses have been incurred. The entries to...Become a member and unlock all Study Answers Start today. Try it now Create an account Ask a question Our experts can answer your tough ...
Does prepaid insurance affect a cash flow statement in accounting? In accounting, are supplies expensed when used or purchased? Where would paid office rent go in the accounting equation? Do you keep fully depreciated assets on the books in accounting? In accounting, is cost of goods sold put...
Prepaid Insurance b. Accounts Payable c. Cash d. Land e. Advertising ExpenseWhich of the following is not a liability? a. Accounts payable b. Unearned revenue c. Wages payable d. Prepaid expenseWhich of the following are sources of cash? ...
a) credit prepaid rent account b) debit insurance expense account c) credit tax payable account Which of the following is most likely to be classified as a noncurrent liability? a. Bonds Payable b. Accounts Payable c. Interest Payable d. Re...