Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 37 - No. 16)
What is a "prepaid expense"?
An expense that has been paid but not yet incurred.
An expense that has been incurred but not yet paid.
An income that has been earned but not yet received.
An income that has been received but not yet earned.
Explanation
A prepaid expense is an expense that has been paid in advance but the benefits will be received in the future.
Comments (0)
