Describe Prepaid Expenses.

      

Describe Prepaid Expenses.

  

Answers


Kavungya
A prepaid expense is an expense that is not payable but cash has already been paid. A prepaid expense should not be charged in the income statement (profit and loss account) thus deducted from the reported expenses therefore should be carried forward to the next financial period. Prepaid expenses are treated as a current asset in the balance sheet.
fig60178143.png
Kavungya answered the question on August 17, 2021 at 10:45


Next: Define the term Accrued Income.
Previous: What is a Prepaid Income?

View More Financial Accounting Questions and Answers | Return to Questions Index


Exams With Marking Schemes

Related Questions