Accounting Dictionary - Letter P
is a prepaid expense account used to keep track of cash paid for insurance coverage that has not been expensed. Prepaid insurance is an asset account presented in the assets section on the balance sheet. Prepaid insurance can be current (i.e., insurance coverage will expire in less than 12 months after the balance sheet date) or non-current (i.e., a portion of prepaid insurance that will expire in more than 12 months after the balance sheet date).
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