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Prepaid expense is a debit balance.... Explanation... increase in assets......debited decrease in assets ..........credited increase in liabilities ........credited decrease in liabilities..........debited Prepaids Expenses are current assets since future expenses have been covered. Accordingly, an increase to prepaid expenses is a debit.
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investing activities in cash flow statement
A cash flows statement shows the companies cash flow, or money "flowing" in and out of the company from expenses, purchases, sales, etc. Such statements are usually done… monthly. A balance sheet is a summary of a person's or organization's (business') balances. Assets, liabilities, and owners equity are listed as of a specific date, such as the end of a financial year.
A prepaid expense is an asset listed on the balance sheet.
It is an asset, therefore a debit (on initial recognition). It is credited as the prepaid expenses are actually received (expensed out)
Expenses normal balance is debit.
If your credit side of a trial balance exceeds the debit side by a significant amount is it okay to add the difference to the balance of misc expense to complete the current month' financial statement?
your taking accounting for managers too huh? lol
Debit in your Income statement credit in your balance sheet.
credit because it is a liability.
All expenses debit (-)
In a statement of cash flow a net income is a credit, which should always be the same amout of cash in your balance sheet. (nice check)
Expenses maintain a debit balance. They are opposite accounts to Revenue which maintains a credit balance. Gross Income (Gross Revenue) - Expenses = Net Income
Prepaid insurance is amount paid in advance that's why it is anasset of business and like all other assets accounts it also hasdebit balance as normal balance.
Assets, Expenses and Losses have native debit balances. Liabilities, Stockholders' equity, Revenues, and Gains have native credit balances.
Prepaidexpenses are like current assets, as for current assets payment made butbenefit use in future same like prepaid expenses are those expenses for whichpayment is made in …advance but benefit not yet taken like prepaid insuranceetc.
Accrued expenses are also expenses which are accrued but not paid yet so these are also shown in debit side of trial balance.