unexpired insurance at the end of the fiscal period represents; an accrued asset, an accrued liability, an accrued expense, or a deferred expense?
unexpired insurance at the end of the fiscal period represents; an accrued asset, an accrued liability, an accrued expense, or a deferred expense?
Has the full premium been paid or is this on the "installment plan" and therefore more funds will be owed.
Sra
deferred expense
To determine whether unexpired insurance at the end of the fiscal period represents an accrued asset, an accrued liability, an accrued expense, or a deferred expense, we need to understand the concepts of these terms.
An accrued asset refers to something that a company has earned or acquired but has not yet received payment for. An accrued liability represents an obligation or debt that a company has incurred but has not yet paid. An accrued expense is an expense that a company has incurred but has not yet paid for. A deferred expense is an expense that has been paid in advance but has not yet been used or consumed.
In the case of unexpired insurance at the end of the fiscal period, it represents a benefit that has been paid for in advance but has not yet been used. Therefore, it is considered a deferred expense. The payment for the insurance has been made, but the coverage period extends beyond the current fiscal period. As the insurance coverage is still applicable in the future, it is classified as an asset and not yet recognized as an expense.
So, the correct answer is "a deferred expense."