Bookkeeping - 14 de noviembre de 2022
What Are Liabilities in Accounting?
Consider prepaid insurance, where a company pays a premium for 12 months of coverage upfront, creating a “prepaid insurance” asset. Each month, a portion of this asset is moved to “insurance expense” on the income statement as the coverage is used. In the following month, when updating the vacation accrual, you would only record the […]