Companies usually allocate prepaid expenses, such as prepaid insurance, to expense in equal amounts each time period.

Name: Companies usually allocate prepaid expenses, such as prepaid insurance, to expense in equal amounts each time period.
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Prepaid expenses are allocated to expense in equal amounts each time period to match the portion of the prepaid asset consumed. This is done in order to adhere to the matching principle in accounting.

Companies Usually Allocate Prepaid Expenses, Such as Prepaid Insurance, to Expense