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.
A prepaid account is one in which the amount paid for any cause is posted,the benefit for which relates to the forthcoming financial periods. Whereas, an unearned account is the one in which the amount posted is unearned in the sense that the money has been received, but the benefit for which hasn't been provided yet.
The journal entry for prepaid income is a debit to the Cash account and a credit to the Unearned Revenue account. The Unearned Revenue account is a liability. The rationale for such an entry is that this is income received in advance. This means that the income has not been earned since the services have not yet been performed. When the services have been performed it is appropriate to recognize the revenue and offset the liability account, unearned revenue.
what is the difference between freight prepaid and freight prepaid abroad
checking from bank fund & credit card prepaid by credit
In prepaid accounts cash is paid before and benefits are taken later while in accrual accounts benefits are taken before but cash is paid later.
Prepaid is the same as fixed term!
Deferrals are either prepaid expenses or unearned revenues. Adjustments are made for deferrals to record the portion that represents either the expense incurred or the revenue earned. An adjustment for prepaid expenses increases an expense and decreases an asset account. An adjustment for unearned revenue increases a revenue account and decreases a liability account. Accruals are either accrued revenues or accrued expenses. Adjustments are made for accruals to record revenues from services performed that have yet to be collected. An adjustment for accrued revenues increases an asset account and increases a revenue account. An adjustment for accrued expenses increases an expense account and increases a liability account.
Prepaid expenses, depreciation, accrued expenses, unearned revenues, and accrued revenues are all examples of
A prepaid expense account is an asset, thus not a temporary account either.
A prepaid expense account is an asset, thus not a temporary account either.
A prepaid expense account is an asset, thus not a temporary account either.
balance sheet as a current liability until it's earned, when you transfer the amount earned to revenue.