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A prepaid expense account is an asset, thus not a temporary account either.
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What type of account is a prepaid expense account?
A prepaid expense account is an asset, thus not a temporary account either.
What account types is a prepaid expense account?
A prepaid expense account is an asset, thus not a temporary account either.
Account type and normal balance of prepaid expense?
asset, debit
How do you journal entry prepay account?
Dr: Prepayment to Suppliers (In Case of Expense, then "Prepaid expense" account will be debited e:g Prepaid Rent) Cr: Bank/Cash
Which type of account is prepaid expenses?
Prepaid expense is personal account in nature and default normal balance is debit balance and shown under current asset in asset side of balance sheet.
What is the difference between prepaid unearned account?
Prepaid is that amount of expense which is paid in advance and expense not occured while unearned account is that amount where amount for services received in advance but services not provided.
Is prepaid insurance account a nominal account?
No, it is a real/permanent account. Insurance expense is a nominal account.
Is prepaid rent is what type of asset?
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.
The account type and normal balance of prepaid expenses?
1. asset, debit 2. expense, debit 3. revenue, credit 4. liability, credit which one of them???
Why is prepaid rent considered an asset account?
Because it will be transferred to an expense account....debit must equal credits on the j/e
What is prepaid expense?
A prepaid expense is an account that a business might have to pay the traveling expenses of salesmen. The salesmen are given a certain amount for travel each week or month that can be used for meals and hotels and other travel expenses.
Journal entry of prepaid expenses?
these are those expenses which have been paid in advance. it means that these expenses,though not related to the current year,have been included in the expenses of current year. so in order to show a true and fair view,we have to deduct such prepaid expenses from the original expenditure as they are belonging to the next year. the entry is (for example) prepaid insurance dr to insurance a/c cr
