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advance paid is current asset and advance received is current liability.

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∙ 17y ago

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Is income tax a current liability or an expense?

Accrued income tax (Income Tax Payable) is a current liability. When the tax is actually paid it is reported on the income statement as Income Tax Expense.


Is rent paid expense an asset or liability?

Rent paid is typically considered an expense rather than an asset or liability. When rent is paid, it reduces the cash account (an asset) and is recorded as an expense on the income statement, reflecting the cost of using the rented space during that period. However, if rent is paid in advance, it may be classified as a prepaid expense, which is considered a current asset until the rental period occurs.


Insurance premium paid in advance Is it a accrued expenses?

No, if Insurance premium is paid in advance then it is a Prepayment - current asset.


Is prepaid rent an asset or liability?

Prepaid rent is the asset of compan as it is paid already but not due yet so it is current asset and shown in current assets under balance sheet.


Is the cash dividend paid asset or liability?

is an asset


How rent paid in advance is treated in accounting equation?

If you are the payer Increase in Prepaid Expenditure- Asset Decrease in Bank - Asset Equity= Asset- Liabilities 0 = +/- - 0 If you are the payee Increase in Income Recieved in Advance - Liability Increase in Bank - Asset Equity= Asset- Liabilities 0 = + - +


Is prepaid advertising a current assets?

Yes prepaid advertising is current asset as this expense is paid in advance but benefit which is takeable in near future time that's why it is current asset.


Does insurance go under assets or liabilities?

If insurance paid in advance then it is asset but if insurance benefit taken and payment not made then it is liability.


Is prepaid rent is asset?

Yes, any expense paid in advance is current asset as the actual benefit will be taken in future time period.


Is prepay insurance a current asset?

Yes any expense paid in advance is current assets as the benefit of that amount is required to be taken in future.


Paid-in capital a asset or liability?

Neither, it is equity


Is tax paid on purchases an asset or liability?

Tax paid on purchases are considered a liability. Anything paid to another is considered a liability for businesses because they are spending money.

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