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

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16y ago

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Insurance premium paid in advance Is it a accrued expenses?

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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 = + - +


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.


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