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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 Prepaid Rent is classified as a Current Asset.
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The Prepaid Rent account represents rent paid in advance and is classified as Current Assets true or false?
Yes prepaid rent is rent paid in advance and as normally it is for short term or for one fiscal year that's why it is shown under current assets.
Is long term debt asset or liabilities?
A long-term investment is considered a long-term asset, because a firm expects a probable future economic benefit to result from it.
Is Prepaid insurance is an asset account?
Prepaid insurance is that amount which is paid in advance for future insurance so until actual insurance facility is availed by company it is an asset of company and if it is for short term or will be availed in current fiscal year then it is current asset otherwise a fixed asset, if some portion is usable in current fiscal year then only that portion will be current asset and remaining will be fixed asset.
Is machinery on an income statement or balance sheet?
Machinery is an asset of business and long term asset so it is part of long term asset in balance sheet.
Is inventory an example of a long term asset?
Inventory is usually stocked for short term time period for one to three months so it is a current asset and never be considered as long term asset.
Is goodwill a long term asset?
yes
When is the cost of a long term assets expensed?
Cost of long term asset is expensed through depreciation in income statement for entire useful life of an asset.
A long-term asset must have a useful life of more than a month?
No, a long term asset must have a useful life of more than a year
Is common stock a long term or current asset?
No
What is the difference between asset management and strategic asset management?
"Strategic asset management" could refer to "strategic asset allocation", i.e. long-term asset allocation - whereas "tactical asset allocation" refers to short-term investments.
A capitalized asset will appear on the balance sheet as a long term asset True or False?
true
What order do the current assets go in?
CURRENT ASSETS FORMAT 1.cash and cash equivalent such as cash on hand,cash on bank, petty cash etc. 2.short term investment such as stocks, bonds, other short term investment 3. receivables such as accounts receivable, allowance for bad debts,notes receivable,interest receivables etc. 4. Inventory such as raw materials 5. prepaid expense such as prepaid rent,prepaid rent, prepaid advertising etc.
