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Prepaid expense is measurable with objectivity, but deferred revenue expense is optional and subjective being based on judgment of the accountant. The latter is usually written off at the time of admission of a partner, unless a decision to the contrary is taken, but pre-paid expense cannot be written off till its benefit is consumed.
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What the difference between expenses and prepaid expenses?
Expenses are those amounts the benefit of which is already taken by business while prepaid expenses are advance payments for those expenses which company will incur in future.
What is difference between advance expenses and prepaid expenses?
i dont have any knowlege.....Nikita Gohil
What is the difference between prepaid expenses and deferred expenses except that deferred relates to long term assets?
prepaid expenses are those which we pay in advance ! like rent of a building , its a prepaid expense . we first pay the rent and then use the building whenever we need. deffered expenses are those which have been accumulated and are not paid yet. for example if we do not pay the rent of the building for 5 months , so it has been deffered means accumulated! salma A prepaid expense usually relates to a specific time frame, like pre-paying rent as mentioned above. Whereas a deferred expense may not have a specific time frame in which to be recognized. It might even be a partial expense which will continue to increase (whether actually paid or not) until the time comes when it will be amortized. An example might be costs associated with the acquisution of a business or product line. Those costs might continue to accrue as deferred expenses for months (or longer) until the transaction is complete and revenues begin to flow.
What is the difference between out standing expense and prepaid expenses?
Outstanding Expenses are expenses which are due at a specific point of time for example if the actual date to pay the rent is 1st july and we don't pay the rent till august end, then it is called the outstanding Expenses (outstanding rent) prepaid Expenses are expenses which are paid in advance for example if we paid the premium of Insurance in advance i.e before due date, then it calls the prepaid expenses.
Differnce between outstanding expenses and prepaid expenses?
prepaid expenses are paid in advance and they are called current assets.The outstanding expense is the unpaid money,still owed.
What the difference between expenses and prepaid expenses?
Expenses are those amounts the benefit of which is already taken by business while prepaid expenses are advance payments for those expenses which company will incur in future.
What is difference between advance expenses and prepaid expenses?
i dont have any knowlege.....Nikita Gohil
What is the difference between prepaid expenses and deferred expenses except that deferred relates to long term assets?
prepaid expenses are those which we pay in advance ! like rent of a building , its a prepaid expense . we first pay the rent and then use the building whenever we need. deffered expenses are those which have been accumulated and are not paid yet. for example if we do not pay the rent of the building for 5 months , so it has been deffered means accumulated! salma A prepaid expense usually relates to a specific time frame, like pre-paying rent as mentioned above. Whereas a deferred expense may not have a specific time frame in which to be recognized. It might even be a partial expense which will continue to increase (whether actually paid or not) until the time comes when it will be amortized. An example might be costs associated with the acquisution of a business or product line. Those costs might continue to accrue as deferred expenses for months (or longer) until the transaction is complete and revenues begin to flow.
What is the difference between freight prepaid abroad and freight prepaid?
what is the difference between freight prepaid and freight prepaid abroad
What is the difference between out standing expense and prepaid expenses?
Outstanding Expenses are expenses which are due at a specific point of time for example if the actual date to pay the rent is 1st july and we don't pay the rent till august end, then it is called the outstanding Expenses (outstanding rent) prepaid Expenses are expenses which are paid in advance for example if we paid the premium of Insurance in advance i.e before due date, then it calls the prepaid expenses.
Differnce between outstanding expenses and prepaid expenses?
prepaid expenses are paid in advance and they are called current assets.The outstanding expense is the unpaid money,still owed.
Difference between outstanding expenses and prepaid expenses?
Outstanding expenses are the expenses which have fallen due at the end of the accounting period but which has not been paid. Its a liability for the company and will be shown under the Current liabilities and provisions. Prepaid expenses are the expenses which paid during the year before its due. The money is paid out but its not due at the end of the period. Its an asset and will be shown under current Assets in the Balance sheet.
What is the difference between prepaid expense and advances?
Expenses already incurred but not necessarily for the current accounting period is prepaid expense. In the case of advance, the expenses even though identified, have not been incurred but only cash has been taken out for the purpose of incurring such expense.
Journal entry for prepaid expenses?
1.Intial Step when we pay the prepaid Expenses Prepaid Expenses A/c DR Bank A/C CR 2.Later on adjustment in our books Expenses A/c DR Prepaid Expenses A/C CR
Are prepaid expenses an asset liability or equity?
NO! Prepaid expenses are assets!!
What is difference between prepaid expenses and deposits?
There isn't much of a difference between a prepaid expense and a deposit. Both terms are monies that are paid in advance to pay for something. With a prepaid expense, the money pays usually for a bill or utility. A deposit on the other hand, is sometimes given back after the obligation is paid. If it is not paid, the deposit is kept as payment.
Is Prepaid expenses considered a nominal account?
Yes, prepaid expenses should be a nominal account. Prepaid expenses are not assigned to a particular organization, but rather a category.
