Yes. All prepaid items go in current assets until they are used and transferred to the profit and loss.
Prepaid insurance premia is to be shown in the Profit & Loss Account, and not as an asset in the Balance Sheet.
Yes
Prepaid insurance would be an asset. Insurance expense is when the insurance has been used up, thus making it an actual expense on the Income Statement. Whereas Prepaid Insurance on a Balance sheet is classified as an Asset.
When payment for insurance is made advance of actual expenses then it is called prepaid insurance which is asset for business until insurance benefit is utilized while insurance expense is actual insurance expense when insurance benefit is taken.
Asset
A prepaid expense is an asset listed on the balance sheet.
prepaid expense adjusting entries
The decrease in cash is likely due to the prepayment of expenses, where cash is used to pay for future expenses in advance. This leads to an increase in prepaid expenses on the balance sheet as the expenses are prepaid but not yet incurred. Over time, as the prepaid expenses are used up, they are expensed and cash balances will start to increase again.
A prepaid expense account is an asset, thus not a temporary account either.
A prepaid expense account is an asset, thus not a temporary account either.
A prepaid expense account is an asset, thus not a temporary account either.
Supplies expense is neither an asset nor a liability it is an expense. Prepaid supplies would be an example of an asset and as the supplies are used they become expenses, supplies expense.
Current Asset
Supplies expense is neither an asset nor a liability it is an expense. Prepaid supplies would be an example of an asset and as the supplies are used they become expenses, supplies expense.