No. They are both assets.
"Accounts Receivable" represents money owed to the business by their credit customers.
"Prepaid expenses" represents money spent on goods and services that have not yet been received. Some examples of prepaid expenses are insurance, rent, and legal fees.
Accounts Receivable + Inventory - Accounts Payables. (excludes prepaid expenses and accrued liabilities)
Cash, Accounts Receivable, Supplies, Prepaid Insurance, Equipment, Accumulated Depreciation-Equipment, Accounts Payable, Wages Payable, Capital
true
Outstanding Expenses are expenses which are due at a specific point of time for example if the actual date to pay the rent is 1st july and we don't pay the rent till august end, then it is called the outstanding Expenses (outstanding rent) prepaid Expenses are expenses which are paid in advance for example if we paid the premium of Insurance in advance i.e before due date, then it calls the prepaid expenses.
1.Intial Step when we pay the prepaid Expenses Prepaid Expenses A/c DR Bank A/C CR 2.Later on adjustment in our books Expenses A/c DR Prepaid Expenses A/C CR
Accounts Receivable + Inventory - Accounts Payables. (excludes prepaid expenses and accrued liabilities)
Accounts Receivable + Inventory - Accounts Payables. (excludes prepaid expenses and accrued liabilities)
Accounts Receivable + Inventory - Accounts Payables. (excludes prepaid expenses and accrued liabilities)
Some assets will become costs in a future period such as Inventory and Prepaid Expenses. Fixed Assets will be depreciated in future periods. However, assets such as Cash and Accounts Receivable do not represent future expenses.
Cash, Accounts Receivable, Supplies, Prepaid Insurance, Equipment, Accumulated Depreciation-Equipment, Accounts Payable, Wages Payable, Capital
true
Outstanding Expenses are expenses which are due at a specific point of time for example if the actual date to pay the rent is 1st july and we don't pay the rent till august end, then it is called the outstanding Expenses (outstanding rent) prepaid Expenses are expenses which are paid in advance for example if we paid the premium of Insurance in advance i.e before due date, then it calls the prepaid expenses.
1.Intial Step when we pay the prepaid Expenses Prepaid Expenses A/c DR Bank A/C CR 2.Later on adjustment in our books Expenses A/c DR Prepaid Expenses A/C CR
NO! Prepaid expenses are assets!!
The group of accounts that is comprised of only assets are prepaid expenses. Money can be owed on such things as buildings and other equipment.
The current assets are usually listed in the order in which they are expected to be converted into cash: 1. Cash and cash equivalents 2. Short-term investments 3. Accounts and noted receivable 4. Inventories 5. Prepaid expenses etc.
Basic accounts found on the balance sheet include : ASSETS Cash, Marketable Securities, Accounts Receivable, Inventory, Prepaid Expenses,Investments (Long Term), Plant & Equipment(Less Depreciation) LIABILITIES Current Liabilities include: Accounts payable, Notes, Payable, Accrued Expenses, Long Term Liabilities include: Bond Payable Stockholders Equity include: Preferred Stock, Common Stock, Capital Paid in excess of par, Retained Earning, less Treasury Stocks.