0
Yes, prepaid client payments are considered a liability. When a business receives payment in advance for goods or services not yet delivered, it creates an obligation to fulfill that promise in the future. This obligation is recorded as a liability on the balance sheet until the goods or services are provided, at which point the liability is reduced and recognized as revenue.
What else can I help you with?
Are prepaid expenses an asset liability or equity?
NO! Prepaid expenses are assets!!
Is prepaid rent an asset or liability in the books of the payer?
asset
Is unearned fees a example of prepaid expenses?
No, unearned fees are not an example of prepaid expenses. Unearned fees represent income received before services are performed, indicating a liability on the balance sheet until the service is rendered. In contrast, prepaid expenses are payments made in advance for goods or services that will be received in the future, representing an asset until the benefit is realized.
Are prepaid expenses a liability?
No. They are listed as a debit on the asset side of the Balance Sheet.
If you have a prepaid Go phone will the payments show up on your credit report?
No.
How is Prepaid Income treated in balance sheet?
Prepaid Income is considered current liability as it represents the advances received from customers on account of work to be performed.
Unearned revenue a liability?
Unearned revenue is the amount which client has paid already but not received the services yet so it is the liability of the company until they renderred the services to client or otherwise return back the amount to the client.
If there is a balance in the prepaid rent account after adjusting entries are made it represents?
A liability is what it represents.
Who has pecuniary liability for erroneous payments?
Certifying Officers have pecuniary liability for erroneous payments.Certifying Officers
Would extra payments made on a credit card be an asset liability income or expense?
liability
Is unearned rent a deferred liability?
If it has been prepaid by a customer and you show the cash related to this prepayment on your books, it is straight liability. You can think of this as something that you have but does not belong to you until you earn it. It is not deferred liability.
What type of account is Prepaid Rent?
balance sheet as a current liability until it's earned, when you transfer the amount earned to revenue.
