A prepaid expense is carried on an insurance company's balance sheet as a current asset until it is consumed. That's because most prepaid assets are consumed within a few months of being recorded.

Trip cancellation insurance reimburses you for any prepaid expenses if you have to cancel an upcoming trip. These costs can include things like airline tickets, hotel reservations and prepaid ...

Insurance is generally prepaid as companies may purchase it on a six-month, one-year or multiyear term. The total amount of prepaid insurance is not recorded as an immediate expense at the time of ...