What is advance premium?
I've seen this show up a few times (like 2017 Spring #15) and I'm never sure how to categorize it when it comes up, so I want to understand it better. According to this problem it is a liability. Is advance premium similar to unearned premium? Is it premium that you have received but haven't earned yet, so it counts as a liability?
Comments
Yes, advance premium is unearned in its entirety.