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NO! Prepaid expenses are assets!!
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∙ 11y ago
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Are prepaid expenses a liability?
No. They are listed as a debit on the asset side of the Balance Sheet.
Is supplies expense a liability or asset?
Supplies expense is neither an asset nor a liability it is an expense. Prepaid supplies would be an example of an asset and as the supplies are used they become expenses, supplies expense.
Is cash an asset liability or equity?
asset equity
Are retained earnings an asset equity or liability?
asset equity
Is rent income a asset liability or owners equity?
asset liability
Are prepaid expenses a liability?
No. They are listed as a debit on the asset side of the Balance Sheet.
Is interest expenses an asset or a liability?
In accounting, interest and other expenses are neither; they are a contra-equity account. This means that as expenses increase, the owners have less equity. Expenses should normally be treated as a debit account, so as you record interest expenses, you should be crediting either an asset or a liability at the same time.
Is expense a asset or liability?
Supplies expense is neither an asset nor a liability it is an expense. Prepaid supplies would be an example of an asset and as the supplies are used they become expenses, supplies expense.
Is cash an asset liability or equity?
asset equity
Is supplies expense a liability or asset?
Supplies expense is neither an asset nor a liability it is an expense. Prepaid supplies would be an example of an asset and as the supplies are used they become expenses, supplies expense.
Are retained earnings an asset equity or liability?
asset equity
Is rent income a asset liability or owners equity?
asset liability
Does a decrease in prepaid expenses increase cash flow?
No, it does not. You already paid for it. The cash involved is gone. Whatever was pre-paid has decreased in value as an asset. It's not a liability, equity, revenue, nor an expense. It would have to be an increase in another form of an asset. Accumulated depreciation is likely the asset that would increase.
How rent paid in advance is treated in accounting equation?
If you are the payer Increase in Prepaid Expenditure- Asset Decrease in Bank - Asset Equity= Asset- Liabilities 0 = +/- - 0 If you are the payee Increase in Income Recieved in Advance - Liability Increase in Bank - Asset Equity= Asset- Liabilities 0 = + - +
Is drawings an asset equity or liability account?
equity
Is prepaid rent an asset or liability in the books of the payer?
asset
Is cash an asset liability or owners equity?
asset
