12 Jan Prepaid Expenses Examples, Accounting for a Prepaid Expense

However, with prepaid insurance, you were able to protect your business and ensure that you could continue operating without significant disruption. Like all financial products, prepaid insurance has both advantages and disadvantages to consider. A prepaid asset is a type of asset that has economic value to the business because of its future benefit. Prepaid income or advance received is treated as a liability in the supplier books of accounts. Founded in 1993, The Motley Fool is a financial services...