0
What else can I help you with?
Is insurance expense an asset or liability?
Prepaid insurance would be an asset. Insurance expense is when the insurance has been used up, thus making it an actual expense on the Income Statement. Whereas Prepaid Insurance on a Balance sheet is classified as an Asset.
What is the difference between prepaid insurance and insurance expense?
When payment for insurance is made advance of actual expenses then it is called prepaid insurance which is asset for business until insurance benefit is utilized while insurance expense is actual insurance expense when insurance benefit is taken.
What is nature of Prepaid expense?
Asset
Is a prepaid expense on the balance sheet or the income statements?
A prepaid expense is an asset listed on the balance sheet.
What does an asset expense relationship exist with?
prepaid expense adjusting entries
Why there is decreasing in cash while increasing in prepaid expense?
Because a prepaid expense is a type of asset. Once you prepay insurance for example. You have an increase in this asset called "Prepaid Insurance", and thus a reduction in cash. Once the Prepaid Insurance is used up it decreases while the Insurance expense increases. This is called amortization.
What account types is a prepaid expense account?
A prepaid expense account is an asset, thus not a temporary account either.
What account type is a prepaid expense account?
A prepaid expense account is an asset, thus not a temporary account either.
What type of account is a prepaid expense account?
A prepaid expense account is an asset, thus not a temporary account either.
Is expense a asset or liability?
Supplies expense is neither an asset nor a liability it is an expense. Prepaid supplies would be an example of an asset and as the supplies are used they become expenses, supplies expense.
Is prepaid insurance a current asset or fixed asset?
Current Asset
Is prepaid insurance an asset?
yes
