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Ace — Notes

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Prepaid Insurance and the End-of-September Adjustment

5 Key points1 Action7 Flashcards

Summary

$1,200 prepaid insurance covers 12 months.
Monthly expense is $100 as coverage is used.
End-of-September adjustment moves one month to expense.

Key points

Asset first, then expense over time.
Paying for insurance ≠ using the coverage.

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