Insurance expenses are payments for commercial policies such as general liability, executive life, and property insurance. Prepaid insurance is recorded as an asset and expense, with companies debiting the prepaid account and crediting the expense account. Current assets include prepaid insurance, which is a common expense. Companies may have multiple expense accounts for different policies, but only one prepaid insurance account.
Gastos de seguro represent a payment for a prima de seguro related to a commercial policy. Many types of security policies are common in the businesses. General responsibility, executive life security, the building, the team and other types are available for companies. El gasto del seguro has a balance deudor normal, ya que es una cuenta de gastos. The companies generally debit the gastos and the credit effectively each time they pay up first in safety. Companies can also have a prepaid security, which occurs when they pay a security policy in full.
The secure prepayment is an active courier, reported in the general balance of a company. When a company buys a full security policy, such as for example 12 months, it will debit the prepaid security account and credit the effective account of the company. This reflects that a part of the security policy has life remaining. The precise informers requieren that the companies enumerate the police as an asset and gasto that each portion pays off the longevity of the police. The gasto del seguro is, again, the value of the first monthly that is charged to the police.
The diary entry for the secure prepayment is similar to the standard entry for secure gastos. Upon recognizing the gas of a prepaid security policy, the counters will debit a gas account and a secure prepaid credit. Businesses will recognize safe gastos each month using this process, creating a uniform flow of gastos and net inputs. This entry is most common for those companies that use the accumulation accounting method.
Current assets represent elements that a company expects to use in the next 12 months. At the bottom are the most liquid assets that a company has, which means that the company can convert the assets into effective quickly. Los activos corrientes comunes incluyen efectivo, cuentas por cobrar, inventory y gastos prepagos. Las pólizas de seguro son a menudo uno de los gastos prepagos más comunes. The companies will purchase a safety policy as part of their risk management plans, hoping for a future effective need in the event of an unfortunate event.
The companies may have multiple accounts of gastos de seguro. This provides clarity on the world gastado mes por cada police de seguro, es decir, responsabilidad civil general o vehículo. The interested parties in the menu prefer to see these gastos separately so that they can determine how much each policy offers for unplanned events. Although there may be multiple gas accounts, companies can only use one prepaid secure account. The use of an asset account is possible, ya that each policy securely prepays is an asset and rarely it needs separation in the main book of the company to determine the value of each policy.
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