Definition:A prepaid expense is the prepayment of services before they are received. In other words, it’s a resource that is paid for in advance of actually receiving the resource. What Does Prepaid Expenses Mean? Contents[show] Since the matching principles requires that all expenses be matche...
The initial journal entry for a prepaid expense does not affect a company’s financial statements. For example, refer to the first example of prepaid rent. The initial journal entry for prepaid rent is a debit to prepaid rent and a credit to cash. These are both asset accounts and do not...
4. What is Prepaid Expense Amortization? 5. Are Prepaid Expenses a Credit or Debit? 6. What is the Effect of Prepaid Expenses on Financial Statements? 7. Why Can't Prepaid Expenses be Deducted Straight Away? 8. Does it Make Sense to Prepay and Expense? 9. What is Prepaid Expense vs ...
While a down payment is apartialpayment for a certain purchase, that only represents a percentage of the full amount due. A down payment is also usually part of obtaining a loan. #3. Can You Accrue a Prepaid Expense? No, you can’t accrue a prepaid expense. Accrued expenses are the op...
Definition:Deferred expense, also called a prepaid expense, is a cost that has been incurred but is recorded as an asset until the related goods or services are consumed. In other words, money has been spent on goods or services in the current period, but the goods and services have not ...
Before a balance sheet is prepared, the accountant must review the deferrals/prepaids and move the appropriate amounts to expense. Difference between Deferred Expense and Prepaid Expense It appears that most accountants refer to the deferrals that will become expenses within one year of the balance...
Answer to: An adjusting entry to a prepaid expense is required to recognize expired expense. a. True b. False By signing up, you'll get thousands...
The account type and normal balance of Prepaid Expense would be: a. asset, debit b. liability, credit c. expense, debit d. revenue, credit Unexpired Expense: An expense is considered unexpired when it is paid for in advance. Per the ...
An asset created by prepayment of an expense is___.? recorded as a credit to an unearned revenue accountrecorded as a debit to an unearned revenue accountrecorded as a credit to a prepaid expense accountrecorded as a debit to a prepaid expense account相关知识点: 试题...
百度试题 结果1 题目An adjusting entry could be made for each of the following except: A. Prepaid expenses. B. Depreciation. C. Owner withdrawals. D. Unearned revenues. E. Accrued revenues. 相关知识点: 试题来源: 解析 A. B. D. E.反馈 收藏 ...