أنشئ حسابًا أو سجّل الدخول للانضمام إلى مجتمعك المهني.
The premium on insurance are generally on Annual basis covering a period of One year and the policies are becoming effective or get renewed during anytime of the current accounting year and the unrecognized portion of the current year premium are treated as Prepaid insurance as the expense covers more than One accounting year in which it is incurred.
Prepaid insurance is a short term asset since most insurance is good for one year only.
