Prepaid expense: Expenses paid, but not entirely used in the accounting period

Reclassified to proper accounting period using adjusting journal entries because no benefit has been received

Examples: Insurance, advertising, rent, and subscription services

H_8F_Prepaid_expenses

Learn accounting with the free app

Accounting Flashcards

Accounting Flashcards includes a translate button for English, Chinese, and Spanish.

Learn financial accounting using beautifully illustrated flashcards, coordinated lessons, and rich audio. Whether you are an aspiring CPA or IFRS expert, use this accountancy app to reach your goals. Even an aspiring chartered accountant or those reaching for the CPA Australia can benefit. Topics of accounting standards, equation, terms, ratios, and more are covered.

iPhone6_mockup_truacur_smaller2

Get the PDF book here

Subsribe

 

« Back to Glossary Index