What is classified as a prepaid expense account? Answer and Explanation: Prepaid expenses are expenses that have been paid in advance yet will be used as an expense in the future. It is simply an expense that has already... Learn more about this topic: ...
When a company prepays for an expense, it is recognized as a prepaid asset on thebalance sheet, with a simultaneous entry being recorded that reduces the company’s cash (or payment account) by the same amount.2Most prepaid expensesappear on the balance sheet as a current assetunless the ...
the goods or services are received. A common example of a prepaid expense is aninsurance policy. Another example is a lumpsumpayment forrent; if a companypaysfor a year's worth of rent in advance, it is recorded as a deferred charge. A deferred charge is also called a prepaid expense....
1. Balance Sheet:Prepaid expenses are initially recorded as assets on the balance sheet. They represent future economic benefits to the company. As the prepaid expense is consumed over time, the balance of the prepaid asset decreases through adjusting entries. This reduction in the prepaid asset b...
inventories, prepaid expenses, and operating liabilities—and depreciation expense is added back (as well as any other noncash outlay expense)—to arrive at cash flow from profit, which is formally labeled cash flow from operating activities in the externally reported statement of cash flows.current...
Prepaid Insurance is an example of a current asset. True False Accumulated Depreciation is classified as an expense. a. True b. False Depreciation is an expense that reflects the cost of uncollectible receivables. A) True. B) False. Treasury stock is a debit-balanced asset account. a) True...
capital. Prepaid expenses that span multiple years are considered long-term assets — mostly. The portion of a long-term prepaid expense that is expected to be used within one year is classified as a current asset and the remainder that extends beyond one year is classified as a long-term ...
Here is an example of two companies in a business transaction. It will result in one business classifying the amount involved as a deferred expense, the other as deferred revenue. Anderson Autos is a company with 8 car dealerships in the Seattle, Washington area. Anderson provides each of his...
百度试题 结果1 题目Long-term asset can be classified into ( ) A. current asset B. prepaid expense C. fixed asset D. intangible asset 相关知识点: 试题来源: 解析 CD 反馈 收藏
An advertising expense will normally be classified as an operating cost and included in the income statement under the accounting expense categories of selling, general and administration expenses. What is Prepaid Advertising? Prepaid advertising is a cost which has been paid in advance. A prepayment...