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What are prepaid expenses and prepaid revenues how are they reported on the balance sheet?
Wiki User
∙ 10y ago
Prepaid Expenses:
These are expenses for which company has paid in advance but the benefits has not yet received that's why it is an asset of company and shown under current assets in balance sheet
Prepaid Revenues or unearned revenues:
These are revenues for which company has already received the payment from clients but services or products has not yet supplied so it is a liability of company and shown under current liability section of balance sheet.
Wiki User
∙ 10y ago
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Prepaid insurance is reported on the balance sheet as a?
Prepaid insurance is reported on the balance sheet as a
A balance of a prepaid expence account is normally DEBIT OR CREdit?
Prepaid Expenses would normally have a debit balance.
Where does prepaid expenses go on the balance sheet?
Assets
List Prepaid expenses on balance sheet?
Prepaid Rent, Prepaid Insurance, and Prepaid Interest... maybe? Check it out on Investopedia.com
Prepaid advertising would be reported on the balance sheet as a?
An asset
Prepaid expenses depreciation accrued expenses unearned revenues and accrued revenues are all examples of?
Prepaid expenses, depreciation, accrued expenses, unearned revenues, and accrued revenues are all examples of
Prepaid insurance is reported on the balance sheet as a?
Prepaid insurance is reported on the balance sheet as a
When are prepaid expenses are reported on the income statement as expenses?
Prepaid expenses do not go on the income statement as they are classified as assets. They are amortized over the time period being paid for.Example: If you prepaid $600 dollars for 6 months rent. Then $100 dollars would be expensed each month and the remaining amount is reported on the the balance sheet.
A balance of a prepaid expence account is normally DEBIT OR CREdit?
Prepaid Expenses would normally have a debit balance.
Where does prepaid expenses go on the balance sheet?
Assets
List Prepaid expenses on balance sheet?
Prepaid Rent, Prepaid Insurance, and Prepaid Interest... maybe? Check it out on Investopedia.com
Where does prepaid expense go on balance sheet?
Prepaid expenses are shown in current assets under assets portion of balance sheet.
Prepaid advertising would be reported on the balance sheet as a?
An asset
Does a decrease in prepaid expense increase or decrease cash flow?
Decrease in prepaid expenses increases the cash flow because if there is no prepaid expenses already in balance sheet then cash has to be paid to fulfill expenses but as there are prepaid expenses and company save cash that;s why it increases the cash flow.
Prepaid expense is debit balance or credit balance in cash flow statement?
Prepaid expense is a debit balance.... Explanation... increase in assets......debited decrease in assets ..........credited increase in liabilities ........credited decrease in liabilities..........debited Prepaids Expenses are current assets since future expenses have been covered. Accordingly, an increase to prepaid expenses is a debit.
Are prepaid expenses a liability?
No. They are listed as a debit on the asset side of the Balance Sheet.
Are prepaid legal expenses reported on the 1099?
Yes. Regardless if they are prepaid, the relevant fact is that you paid. All cash payments to a 1099-able vendor in a given year are to be reported on a 1099.
