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...
A related concept under accrual accounting is prepaid expenses. Accrued expenses represent the expenditures incurred before cash is paid, but there are also cases where cash is paid before the expenditures are incurred. Such expenditures are known as prepaid expenses. Prepaid expenses are an asset o...
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 accounting period as when the asse...
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...
A prepaid expense is reported under the category of current assets till it is fully consumed. This is... Learn more about this topic: What are Assets? | Definition & Examples from Chapter 2/ Lesson 17 64K What are assets? Learn the meaning...
Definition of an Asset Account An asset account is a general ledger account used to sort and store the debit and credit amounts from a company’s transactions involving the company’s resources. The balances in the asset accounts will be summarized and reported on the company’s balance sheet...
2)待摊费用( prepaid expense ) ——资产类账户 现金已经支付,但费用不能马上全部确认,而是应该在一定期限内分摊。 3)应计收入( accruedrevenue ) ——资产类账户 企业已经提供产品或服务,但现金还没有收到。 4)应计费用( accruedexpense ) 负债类账户 企业当期应支付,但尚未支付的费用。反馈...
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...
Even though multiple expense accounts may exist, companies may only use one prepaid insurance asset account. The use of one asset account is possible, as each prepaid insurance policy is an asset and rarely needs separation on the company’s general ledger to determine the value of each policy...
An asset is a resource with economic value that an individual or company owns or controls with the expectation that it will provide a future benefit.