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Prepaid Insurance Expense
An accounting term referring to payments made for insurance coverage before the coverage period starts, recorded as an asset on the balance sheet.
Insurance Policy
A contract between an insurance provider and an individual or entity, offering financial protection against loss or damage as specified in the policy terms.
Adjusting Journal Entry
A record documented at the closing of an accounting cycle to distribute revenues and expenses to the appropriate period they took place in.
General Ledger
A general ledger is a comprehensive record of a company's financial transactions over the life of the organization, serving as the primary source for preparing financial statements.
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