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prepaid expenses are paid in advance and they are called current assets.The outstanding expense is the unpaid money,still owed.
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What is the difference between out standing expense and prepaid expenses?
Outstanding Expenses are expenses which are due at a specific point of time for example if the actual date to pay the rent is 1st july and we don't pay the rent till august end, then it is called the outstanding Expenses (outstanding rent) prepaid Expenses are expenses which are paid in advance for example if we paid the premium of Insurance in advance i.e before due date, then it calls the prepaid expenses.
Difference between outstanding expenses and prepaid expenses?
Outstanding expenses are the expenses which have fallen due at the end of the accounting period but which has not been paid. Its a liability for the company and will be shown under the Current liabilities and provisions. Prepaid expenses are the expenses which paid during the year before its due. The money is paid out but its not due at the end of the period. Its an asset and will be shown under current Assets in the Balance sheet.
1 Current assets do not include a. cash b. debtors c. outstanding expenses d. prepaid expenses?
The answer is (C ) Outstanding expenses, as these are liabities of business and not an asset.
What the difference between expenses and prepaid expenses?
Expenses are those amounts the benefit of which is already taken by business while prepaid expenses are advance payments for those expenses which company will incur in future.
What is difference between advance expenses and prepaid expenses?
i dont have any knowlege.....Nikita Gohil
What is the difference between out standing expense and prepaid expenses?
Outstanding Expenses are expenses which are due at a specific point of time for example if the actual date to pay the rent is 1st july and we don't pay the rent till august end, then it is called the outstanding Expenses (outstanding rent) prepaid Expenses are expenses which are paid in advance for example if we paid the premium of Insurance in advance i.e before due date, then it calls the prepaid expenses.
Why outstanding expenses and prepaid expenses are deducted?
Outstanding expenses are prepaid expenses. Prepaid expenses is money you've paid in advance before the consumption of service or product. For instance, you pay your rent in advance for the 30-31 days that you're going to use the space. By the end of the month you've consumed and have expended that which you have prepaid, and therefore is now an expense.
Difference between outstanding expenses and prepaid expenses?
Outstanding expenses are the expenses which have fallen due at the end of the accounting period but which has not been paid. Its a liability for the company and will be shown under the Current liabilities and provisions. Prepaid expenses are the expenses which paid during the year before its due. The money is paid out but its not due at the end of the period. Its an asset and will be shown under current Assets in the Balance sheet.
1 Current assets do not include a. cash b. debtors c. outstanding expenses d. prepaid expenses?
The answer is (C ) Outstanding expenses, as these are liabities of business and not an asset.
Distinguish between outstanding expenses and unexpired expenses?
Those expenses which have been paid in advance and whose benefit will be available in future are called unexpired or prepaid expenses. e.g. insurance premium The expenses remaining unpaid at the end of the accounting period are called outstanding expenses.Certainly expenses like salaries,rent etc. of the every month will be paid in the next months. By ADITYA (UPES)
What the difference between expenses and prepaid expenses?
Expenses are those amounts the benefit of which is already taken by business while prepaid expenses are advance payments for those expenses which company will incur in future.
What is difference between advance expenses and prepaid expenses?
i dont have any knowlege.....Nikita Gohil
How is an accrued expense adjusted using journal entries?
Adjustment of accrued expenses means to adjust the previously recorded accruals like prepaid expenses or outstanding liabilities etc.
Journal entry for prepaid expenses?
1.Intial Step when we pay the prepaid Expenses Prepaid Expenses A/c DR Bank A/C CR 2.Later on adjustment in our books Expenses A/c DR Prepaid Expenses A/C CR
Are prepaid expenses an asset liability or equity?
NO! Prepaid expenses are assets!!
What is outstanding and prepaid expenses?
Making liability provision for the expenses relating to current year but actual payment to be incurred in the next financial year is outstanding expenses. Example of this case may be salary arrears. Making payment during the current financial year but actual expenditure is related to next financial year is prepaid expense. This type of expenditures arises in the case of advance payment of taxes on certain categories.
Is Prepaid expenses considered a nominal account?
Yes, prepaid expenses should be a nominal account. Prepaid expenses are not assigned to a particular organization, but rather a category.
