At the time a payment is made that represents a prepayment of an expense, a prepaid account such as Prepaid Insurance is debited and the Cash account is credited. This records the prepayment as an asset on the companyâs balance sheet.
English and American cases dealing with the insurance meaning of war have defined it in accordance with the ancient international law definition: war refers to and includes only hostilities carried on by entities that constitute governments at least de facto in character..
The Neutrality Act of 1935 forbade the export of arms, ammunition or implements of war to belligerent nations -- a 1937 amendment to the act forbade American citizens and ships from entering war zones or traveling on belligerents' ships.