The adjusting journal entry for a prepaid expense, however, does affect both a company’s income statement and balance sheet. Refer to the first example of prepaid rent. The adjusting entry on January 31 would result in an expense of $10,000 (rent expense) and a decrease in assets of $1...
Definition of Deferred Expense and Prepaid Expense Deferred expense and prepaid expense both refer to a payment that was made, but due to the matching principle, the amount will not become an expense until one or more future accounting periods. Most of these payments will be recorded as assets...
What is a Prepaid Expense? A prepaid expense refers to future expenses that are paid in advance. The prepaid expense begins as an asset on the balance sheet. Then, over time, as the asset provides its value, it gets recorded as an expense (on the income statement) during the same acco...
A prepaid expense is an asset account that turns into an expense as the value of the asset decreases. To create a journal entry for a prepaid expense, you have to debit the prepaid expense and credit the cash account with the appropriate amount of the expense. To convert assets into expen...
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...
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 ...
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...
Answer to: An accrued expense is an expense: a. Incurred but not paid. b. Incurred and paid. c. Paid but not incurred. d. Not reasonably estimable...
Definition of Deferred Expense A deferred expense refers to a cost that has occurred but it will be reported as an expense in one or more future accounting periods. To accomplish this, the deferred expense is reported on the balance sheet as an asset or a contra liability until it is moved...
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 ...