Accountancy, asked by mangesh5491, 4 months ago

prepaid insurance is​

Answers

Answered by XxItzqueenxX00
11

Answer:

Prepaid insurance is payments made to insurers in advance for insurance coverage. Insurance companies carry prepaid insurance as current assets on their balance sheets because it's not consumed. When the insurance coverage comes into effect, it goes from an asset and is charged to the expense side.

Answered by luckyprathluckyprath
3

Explanation:

Prepaid insurance is payments made to insurers in advance for insurance coverage. Insurance companies carry prepaid insurance as current assets on their balance sheets because it's not consumed. When the insurance coverage comes into effect, it goes from an asset and is charged to the expense side.

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