What is prepaid expenses. Where it is shown in balance sheet?

Question

Accepted Answer

Prepaid expenses are advance payments made for goods or services that will be received in the future.

Prepaid expenses are considered assets on the balance sheet.
They represent expenses that have been paid for in advance but have not yet been used or consumed.
Prepaid expenses are typically shown under the current assets section of the balance sheet.
Examples of prepaid expenses include prepaid rent, prepaid insurance premiums, and prepaid subscriptions.
As the prepaid expenses are used or consumed, they are gradually recognized as expenses on the income statement.

Accepted Answer

Prepaid expenses are shown under current assets on the balance sheet. They are classified as current assets because they typically will be used up or expensed within one year of the balance sheet date.

Accepted Answer

Prepaid expencess is the shown assets in balance sheet which is advance expencess paid to customer.

Accepted Answer

Prepaid expenses are those which are paid in advance. It is shown in asset side of the balance sheet.

What is prepaid expenses. Where it is shown in balance sheet?

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