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Prepaid expenses are of asset in nature because these are payments which have made already but actual expense is not yet incurred so it is shown in current assets under balance sheet until actual expenses incurred.
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∙ 10y ago
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What is nature of Prepaid expense?
Asset
What is the life of Prepaid Expense?
Life of the expense
Is a prepaid expense on the balance sheet or the income statements?
A prepaid expense is an asset listed on the balance sheet.
What type of account is a prepaid expense account?
A prepaid expense account is an asset, thus not a temporary account either.
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 nature of Prepaid expense?
Asset
What is the life of Prepaid Expense?
Life of the expense
How do you book a Prepaid Expense?
[Debit] Prepaid Expense xxxxx [Credit] cash / bank xxxxx
Is a prepaid expense on the balance sheet or the income statements?
A prepaid expense is an asset listed on the balance sheet.
What type of account is a prepaid expense account?
A prepaid expense account is an asset, thus not a temporary account either.
What account type 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.
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.
Why prepaid expense are not expense?
it is because,we just doing a early payment for the future expense
Is a legal expense considered a prepaid expense?
If legal expense paid in advance of rendering services then it is prepaid expense otherwise not. Also this company provides all the necesary steps. tarifcheck365.com
What is prepaid expense and where is it reported in the financial statements?
Prepaid expense is that amount of expense which is paid in advance and expense is not actually incurred and prepaid expense is current assets of business and show under assets side of balances heet.
How does prepaid expense and accrued expense affect the profit of a business?
it will either increase or decrease profit. Prepaid expense should increase profit as the amount has been overstated.
