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Is prepaid insurance a current asset?
yes, it is
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A Long-Term Asset is one in which the benefits of that asset extend beyond the course of a year. The benefits of prepaid rent are typically more immediate, and therefore Prepa…id Rent is classified as a Current Asset.
Yes you can get insurance on prepaid phones.
Current Assets are assets that are considered to be liquidated easily. Cash is considered a current asset because of that reason, it is cash. Anything that can be turned into …cash quickly is considered a current asset. Accounts receivable is also a current asset, while a Note Receivable is considered (non) or more appropriately, a "long-term" asset. Non-Current assets are assets that can't really be changed into cash quickly, these can include land, buildings, Notes Receivable, etc.
Yes. the are counted as a non-financial asset.A prepaid expense is a considered an asset because it entitles the company to receive a benefit in the future. They a…re normally classified as a current assets because usually the benefits will be obtained within a year or a business cycle; whichever is longer.
NO! Prepaid expenses are assets!!
Yes. All prepaid items go in current assets until they are used and transferred to the profit and loss.
If prepaid expanses represents current year expenses then it is current assets in fact, prepaid expenses are current assets. why? this is because you had paid in advance for …the item you want to purhase. eg, if u renting a building which cost u $100000, but u paid $200000, then that additional paid amount is your asset. what is the definition of assets? well, there are 3 component that makes them up. by understanding these 3 component, u can more or less classify items u are not sure. first component, it brings future economic benefits, second you have control over it, and third, it rises from a past event. hopes this help :-)
An asset is something that is considered to be a future economic benefit of the business a current asset is the same but that future economic benefit is expected to occur wi…thin 12 months.
Prepaid Rent is a Current-Asset account. Since it deals with "prepaid" it will expire on a regular basis and is not a "fixed" asset. Each month (or whatever terms the rent may… be paid) the amount is removed from Prepaid-Rent and placed in Rent Expense.
debtors,stock,bills receivable etc
Because it will be transferred to an expense account....debit must equal credits on the j/e
Intangible assets are assets that are not physical in nature. In today's marketplace, they include company's brand name, prepaid pension, goodwill, and company patents, am…ong others.
Prepaid insurance is personal nature of account and amount in it isshown as current asset in balance sheet.
current is all visible and non current assets are not visible like preleminary exp, good will etc Current Assets Current Assets include Cash and Assets that will be converte…d into cash or consumed in a relatively short period of time, usually within a year or the business's operating cycle. Prepaid Expenses and Supplies (already paid for or a liability incurred) are included because they will normally be used or consumed within the operating cycle.Cash and Cash Equivalents Anything accepted by a bank for deposit is considered as Cash or Cash Equivalents. Cash in the form of coins and currency, undeposited checks, money orders, deposits in banks are examples. The cash must be available for immediate use and not restricted in any manner.Cash On HandCash Register Drawer(s) FundsUndeposited CashPetty CashBank Checking AccountsGeneralPayrollSavings AccountsMoney Market AccountsShort-Term Investments Short-Term Investments include readily marketable securities that can easily be sold and converted back into cash. These type of investments normally result from a business in the lucky position of having excess cash available. The invested should be temporary in nature and not made to exercise control over another business or satisfy any other requirements and/or agreements. Reported at current market value by using an allowance for unrealized market gains and losses.Certificates of DepositStocksBondsOther Short Term InvestmentsValuation Allowance for Market Value FluctuationsReceivables Included in this category are Accounts Receivable (open account customer balances resulting from sales) and customer Notes (principal and interest resulting from sales) that are formalized agreements and evidenced in writing. Short term temporary loans and advances are also included. An allowance for estimated uncollectible amounts is also provided.Accounts Receivable This account will normally have a sub ledger that contains a record for each customer or client.Allowance For Bad Debts (Contra Account) Used to record customer accounts that may not be collected.Trade Notes Receivable - Current principal portionInterest ReceivableOther ReceivablesShort Term Owner Loans and AdvancesShort Term Employee Loans & AdvancesShort Term Travel and Expense AdvancesInventory The accounts set up in the inventory section depend on the type of business. Is the business a service, retailer, wholesaler or manufacturer ? For retailers and wholesalers an inventory sub ledger is usually maintained to keep track of each individual product. Manufacturing types of businesses usually and Service types of businesses occasionally maintain sub legers for projects, jobs, and processes.ManufacturerRaw MaterialsManufacturing SuppliesWork In ProcessDirect LaborDirect MaterialManufacturing CostsDirect LaborDirect MaterialManufacturing Overhead - ActualIndirect LaborSupervision SalariesFringe BenefitsManufacturing SuppliesSmall PartsPerishable ToolsUtilitiesDepreciationRentLeasesRepairs & MaintenanceInsuranceProperty TaxesOverhead Costs AppliedFinished GoodsRetailer or WholesalerMerchandise InventoryStore SuppliesServiceWork In Process - Projects / JobsCompleted / Unbilled Projects / JobsCommon To AllOffice SuppliesPrepaid Expenses Prepaid Expenses are assets created by the early payment of cash or assuming a liability. They expire and are charged to expenses based on the passage of time, usage, or other factors. All Prepaid Expenses could be recorded in a single account or separate accounts could be used for each different type.Prepaid InsurancePrepaid RentPrepaid AdvertisingPrepaid InterestOther Prepaid ExpensesOther Current Assets This category includes other current assets that do not neatly fit into any of the other categories. The amounts must be deemed collectible in a relatively short period of time (operating cycle).Notes Receivable - Current principal portion of Long-term NotesOther Current AssetsLong-Term Investments Investments that are intended to be held and not converted into cash for an extended period of time (longer than the operating cycle). Reported at current market value by using an allowance for unrealized market gains and losses.StocksBondsOther Long Term InvestmentsValuation Allowance for Market Value FluctuationsProperty, Plant, and Equipment Assets of a durable nature that are used to provide current and future economic benefits to the business. These accounts will normally have a sub ledger that contains a record for each parcel of land, building, or piece of machinery and equipment along with depreciation calculations and amounts.LandBuildingsAccumulated Depreciation - Buildings (Contra Account)Building ImprovementsAccumulated Depreciation - Building Improvements (Contra Account)Machinery and EquipmentAccumulated Depreciation - Machinery and Equipment (Contra Account)Office EquipmentAccumulated Depreciation - Office Equipment (Contra Account)Computer EquipmentAccumulated Depreciation - Computer Equipment (Contra Account)VehiclesAccumulated Depreciation - Vehicles (Contra Account)Furniture and FixturesAccumulated Depreciation - Furniture and Fixtures (Contra Account)Leasehold ImprovementsAccumulated Amortization - Leasehold Improvements (Contra Account)Computer SoftwareAccumulated Amortization - Computer Software (Contra Account)Other Property, Plant, or EquipmentAccumulated Depreciation - Other Property, Plant, or EquipmentOther Noncurrent Assets All assets that are noncurrent and that do not fit neatly into any of the other categories.Long Term Owner Loans & AdvancesLong Term Employee Loans & AdvancesNotes Receivable - Long-term principal portion of Long-term NotesSecurity DepositsIntangible AssetsPatentsOrganization CostsGoodwillAccumulated Amortization (Contra Account)Liabilities Formal Definition:Claims by creditors to the property (assets) of a business until they are paid. Informal Definition:Other's claims to the business's stuff. Amounts the business owes to others. Additional Explanation: Usually one of a business's biggest liabilities (hopefully they are not past due) is to suppliers where they have bought goods and services and charged them. Liabilities are listed in the order of their expected payment date (maturity). In other words, how soon they must be repaid. Liability accounts are separated into current (short-term) liabilities and long-term liabilities. Short-Term Liabilities generally are debts that must be repaid within 1 year from the date of the balance sheet. Long-Term Liabilities are debts that must be paid more than 1 year from the date of the balance sheet.Current Liabilities Current liabilities are the portion of obligations (amounts owed) due to be paid within the current operating cycle (normally a year) and that normally require the use of existing current assets to satisfy the debt.Short Term Notes (Demand Notes)Accounts Payable Trade A sub ledger is normally maintained in order to keep up with and track amounts owed to individual suppliers.Accounts Payable OtherPayroll LiabilitiesAccrued Salaries and Wages PayableEmployee Payroll Withholdings (Deductions)Employee U.S. Federal Income Tax WithheldEmployee State Income Tax WithheldEmployee Local Income Tax WithheldEmployee FICA WithheldEmployee Medicare WithheldEmployee Garnishments WithheldEmployee BenefitsEmployee Insurance Deduction Withheld401 K Deduction WithheldIRA Deduction WithheldOther Payroll WithholdingsEmployer Provided BenefitsMandatoryEmployer FICA Contribution PayableEmployer Medicare Contribution PayableEmployer Federal Unemployment PayableEmployer State Unemployment PayableEmployer Workmen's Compensation Insurance PayableOptionalEmployer Provided Health Insurance PayableEmployer Provided Life Insurance PayableEmployer Provided 401 K Contributions PayableEmployer Provided IRA Contributions PayableSales Tax PayableUnearned RevenuesCustomer Advances and Deposits PayableInterest PayableBank Loans (Notes Payable) - Current principal portion of Long-Term NotesNotes Payable (other than bank notes) - Current principal portion of Long-Term NotesAccrued and Estimated LiabilitiesAccrued / Estimated Taxes PayableAccrued Real Estate and Property Taxes PayableAccrued Income and Franchise Taxes PayableAccrued Federal Taxes PayableAccrued State Taxes PayableAccrued Local Taxes PayableOther Accruals PayableOther Current LiabilitiesLong-Term Liabilities Long term liability accounts are the portions of debts with due dates greater than a year or the operating cycle. These are obligations that are not expected to be paid within the current operating cycle.Bank Loans (Notes Payable) - Long Term principal portionNotes Payable (other than bank notes) - Long Term principal portionOther Long-Term LiabilitiesEquity (Capital) Formal Definition:The owner's rights or claims to the property (assets) of the business. Informal Definition:What the business owes the owner(s). The good stuff left for the owner(s) assuming all liabilities (amounts owed) have been paid. The accounts set up in this section will depend on the legal structure of your business. These accounts report the Owner's Capital Invested and the Accumulated Profits or Losses for the business since it began. Owner sub ledgers may also be maintained to keep up with and track shares and interests and amounts owed individual owners.Sole ProprietorshipOwner's CapitalOwner's DrawingPartnership or Limited Liability CompanyPartner's or Member's CapitalPartner's or Member's DrawingCorporationCapital StockCommon StockCommon Stock Par or Stated ValuePremium Paid on Common StockPreferred StockPreferred Stock Par or Stated ValuePremium Paid on Preferred StockRetained Earnings
Yes it is - it is categorised under Current Assets.
Insurance is there in the hope that you will never need it! For instance, having your home fully insured would be an asset if your house suffered a fire and was totally gu…tted. But, if you never suffer a fire gutted house, your insurance payments are outgoing payments that are not recoverable.