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Is a prepaid expense an operating asset?
Yes. the are counted as a non-financial asset.A prepaid expense is a considered an asset because it entitles the company to receive a benefit in the future. They are normally classified as a current assets because usually the benefits will be obtained within a year or a business cycle; whichever is longer.
What is the correct order for listing a company's current assets?
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.
What is the difference between prepaid expenses and deferred expenses except that deferred relates to long term assets?
prepaid expenses are those which we pay in advance ! like rent of a building , its a prepaid expense . we first pay the rent and then use the building whenever we need. deffered expenses are those which have been accumulated and are not paid yet. for example if we do not pay the rent of the building for 5 months , so it has been deffered means accumulated! salma A prepaid expense usually relates to a specific time frame, like pre-paying rent as mentioned above. Whereas a deferred expense may not have a specific time frame in which to be recognized. It might even be a partial expense which will continue to increase (whether actually paid or not) until the time comes when it will be amortized. An example might be costs associated with the acquisution of a business or product line. Those costs might continue to accrue as deferred expenses for months (or longer) until the transaction is complete and revenues begin to flow.
What is the difference between deferred and prepaid expenses?
Prepaid expense is measurable with objectivity, but deferred revenue expense is optional and subjective being based on judgment of the accountant. The latter is usually written off at the time of admission of a partner, unless a decision to the contrary is taken, but pre-paid expense cannot be written off till its benefit is consumed.
On a company's balance sheet where is accounts receivable classified?
on a company's balence sheet account receivable is classified under assets. Accounts Receivable is a Current Asset and usually listed below Cash and Cash Equivalents.
Is a prepaid expense an operating asset?
Yes. the are counted as a non-financial asset.A prepaid expense is a considered an asset because it entitles the company to receive a benefit in the future. They are normally classified as a current assets because usually the benefits will be obtained within a year or a business cycle; whichever is longer.
What is the correct order for listing a company's current assets?
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.
Cost of marketing and delivering a product are included in inventory valuation?
Typically no. These costs are usually considered current period expenses and not added to inventory. However, there are certain situations where marketing costs might be deferred over a period of time, creating a prepaid expense.
In a classified balance sheet assets are usually classified as?
current assets; long-term investments; property, plant, and equipment; and intangible assets.
What is difference between prepaid expenses and deposits?
There isn't much of a difference between a prepaid expense and a deposit. Both terms are monies that are paid in advance to pay for something. With a prepaid expense, the money pays usually for a bill or utility. A deposit on the other hand, is sometimes given back after the obligation is paid. If it is not paid, the deposit is kept as payment.
What are stars usually classified by?
They are usually classified by their temperature.
Is Kmart MasterCard prepaid cards for kids and teens?
Not for kids and usually teens have to be at least 18, Discover has a great card called Current Card that is for all teens and kids.
What is the difference between prepaid expenses and deferred expenses except that deferred relates to long term assets?
prepaid expenses are those which we pay in advance ! like rent of a building , its a prepaid expense . we first pay the rent and then use the building whenever we need. deffered expenses are those which have been accumulated and are not paid yet. for example if we do not pay the rent of the building for 5 months , so it has been deffered means accumulated! salma A prepaid expense usually relates to a specific time frame, like pre-paying rent as mentioned above. Whereas a deferred expense may not have a specific time frame in which to be recognized. It might even be a partial expense which will continue to increase (whether actually paid or not) until the time comes when it will be amortized. An example might be costs associated with the acquisution of a business or product line. Those costs might continue to accrue as deferred expenses for months (or longer) until the transaction is complete and revenues begin to flow.
What is the difference between deferred and prepaid expenses?
Prepaid expense is measurable with objectivity, but deferred revenue expense is optional and subjective being based on judgment of the accountant. The latter is usually written off at the time of admission of a partner, unless a decision to the contrary is taken, but pre-paid expense cannot be written off till its benefit is consumed.
All of the following are characteristics of the prepaid tuition plan except what?
Prepaid tuition plans typically allow families to pay for future college tuition at today's rates, providing a hedge against rising costs. They are generally state-sponsored and may have restrictions on which colleges can be attended. However, they do not usually cover additional expenses such as room, board, or fees associated with attending college. Therefore, the characteristic that does not apply is that they cover all college-related expenses beyond tuition.
On a company's balance sheet where is accounts receivable classified?
on a company's balence sheet account receivable is classified under assets. Accounts Receivable is a Current Asset and usually listed below Cash and Cash Equivalents.
All long-term debt maturing within the next year must be classified as a current liability on the balance sheet?
Yes. Usually separated and called "Current Portion of Long-Term Debt"
