advance paid is current asset and advance received is current liability.
No, if Insurance premium is paid in advance then it is a Prepayment - current asset.
is an asset
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 = + - +
Yes, any expense paid in advance is current asset as the actual benefit will be taken in future time period.
Yes any expense paid in advance is current assets as the benefit of that amount is required to be taken in future.
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.
No, if Insurance premium is paid in advance then it is a Prepayment - current asset.
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 an asset
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.
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 = + - +
If insurance paid in advance then it is asset but if insurance benefit taken and payment not made then it is liability.
Yes, any expense paid in advance is current asset as the actual benefit will be taken in future time period.
Yes any expense paid in advance is current assets as the benefit of that amount is required to be taken in future.
Neither, it is equity
Tax paid on purchases are considered a liability. Anything paid to another is considered a liability for businesses because they are spending money.
Other than the fact that one is an asset and the other a liability, this is how each are broken down. A current asset is any asset that can be turned into cash with-in a reasonable amount of time (i.e. cash, supplies, inventory, etc.) This can include some (but not all) accounts receivable. If the account can be reasonably expected to be paid within an accounting period, it is considered a current asset. A current liability is any debt owed that can be reasonably expected to be paid off in 12 months or less (or one accounting period).