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Account Manager Interview Question:

What is the defination of prepaid insurance a short term asset?

Submitted by: Murtaza
The definition of a short term or current asset is cash and other assets that will turn to cash or will be used up or consumed within one year of the balance sheet date. If a company's operating cycle is longer than one year, the definition allows for assets turning to cash, used up, or consumed during the operating cycle to be reported as a current asset.
Submitted by: Murtaza

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