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As a company, we understand that insurance pay in advance would be considered a prepaid expense, but at the end of the coverage period, would
As a company, we understand that insurance pay in advance would be considered a prepaid expense, but at the end of the coverage period, would there be any adjustments made to our financial statements? I was thinking that the expense would be increased for that period, while the prepaid expense account would be decreased.
When this is the case, what type of adjustments do you think the insurance companies makes to there deferred revenues account?
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