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...
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...
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...
One year's worth of insurance is paid in advance. The accountant records the payment as an asset, Prepaid Insurance, and expenses 1/12 of the amount each month as Insurance Expense. This is an example of which of the following concepts? A. Recognition B. Neutrality C. Realization D. ...
aThe mismatch problem is overcome by treating the payment for next accounting period as an expense prepaid; a current asset in this accounting period. The mismatch problem is overcome by treating the payment for next accounting period as an expense prepaid; 当前财产在这个会计年度。[translate] ...
aThe mismatch problem is overcome by treating the payment for next accounting period as an expense prepaid; a current asset in this accounting period. The mismatch problem is overcome by treating the payment for next accounting period as an expense prepaid; 当前财产在这个会计年度。[translate] ...
Conversely, if you have paid for something but haven’t received the associated benefit (revenue), you would book that benefit as an asset (a prepaid expense). In contrast, if your business uses cash accounting, it will recognize revenue or expenses when cash changes hands, whether going ...
The answer is an asset account. A checking account is an asset account. It is an account that is used by the company to record all the deposits and... Learn more about this topic: What are Assets? | Definition & Examples from
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...
One year's worth of insurance is paid in advance. The accountant records the payment as an asset, Prepaid Insurance, and expenses 1/12 of the amount each month as Insurance Expense. This is an example of which of the following concepts? A.RecognitionB.NeutralityC.RealizationD.MatchingE.Produ...