{"id":42070,"date":"2022-03-30T14:26:29","date_gmt":"2022-03-30T14:26:29","guid":{"rendered":"https:\/\/www.joyeriarafa.com\/prepaid-insurance-definition-journal-entries-is-it-2\/"},"modified":"2022-03-30T14:26:29","modified_gmt":"2022-03-30T14:26:29","slug":"prepaid-insurance-definition-journal-entries-is-it-2","status":"publish","type":"post","link":"https:\/\/www.joyeriarafa.com\/?p=42070","title":{"rendered":"Prepaid Insurance Definition, Journal Entries Is it an Asset?"},"content":{"rendered":"

Any remaining prepaid portion of the premium could be refunded to the business if the policy is cancelled before the period covered by those premiums expires. But wait\u2014what if you decide to be extra cautious and prepay for a period longer than a year? In that case, the portion of prepaid insurance not used within one year hops over to the long-term asset section. Imagine ABC Company decides to insure its truck and pays $1,200 for a one-year policy on December 1, 2022.<\/p>\n