prepaid insurance balance sheet
Insurance is considered an asset or liability?
I'm doing a correspondence course Accounting 11th grade and one of the questions is: Calculate the equity staff for Joe, which has the following assets and liabilities: Cash $ 800, Insurance $ 2,000, $ 3,000 clothing, furniture and electronics $ 6000, the credit card debt $ 4000. I know the proper allocation of the others in the balance, but the insurance is threw me for a loop, I suppose that is an advantage, It does not arise as an insurance payment, which leads me to believe is some form of prepaid insurance. Could someone explain me, thanks.
insurance is considered an asset. that generates revenue through value and interest in cash through dividends, therefore, be called a substantial investment. as regards investment to cash and liquidity, as part of its assets. to determine your net worth will have to include all your insurance as part of its assets. definitely an asset!
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