Accountants(Pls come in) Thx
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Why is insurance considered an expense and not an asset.I thought you can sell it off?
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Insurance is an expense because you know how much you will be spending on it every month. The value of the insurance will never flunctuate unlike properties or investments.
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cos u're payin off ur premiums every mth...
if nth happens... u won't get back the premiums u paid.. its not like life insurance n endownment... where u get back a sum upon maturity.
so these insurance ur company pays is an expense. -
Unless it's a Life Insurrance, else it's an expenses. Secondary School accounts got use this to confuse people during EOY examinations.