Hey guys...

So what does this word unexpired insurance mean? What kind of account is it? Where do we place this in the balance sheet?

Thanks in advance:o

It usually refers to an asset--aka "Prepaid Insurance"--which is that portion of an upfront premium payment that is allocable to a later period; i.e. it hasn't 'expired' yet.

Suppose that on Nov 1 you pay 1,200 for insurance coverage that runs for twelve months--from Nov 1 to the following Oct 31. In other words, this policy costs you 100 per month, which is prepaid in advance.

Two months later, on Dec 31, you'd figure that 200 of your original payment has now 'expired' (Nov and Dec's portion), and you've still got 1,000 of 'unexpired' premium. That 1,000 would appear on your Dec 31 Bal Sheet as a current asset.

Hope this helps,

...it was early and I was full of no coffee...