Question

Different between outstanding expense and prepaid expense.in a column

Answer 1

Answer:

Outstanding expenses are expenses which are incurred but not yet paid. ... Outstanding expenses are shown in thebalance sheet as a current liability and then recognized as expenses when they are paid in the next accounting period or periods. Prepaid expenses are future expenses that have been paid in advance.

Answer 2

Hope this will help you.

Explanation:

Outstanding expense are those expenses that are due but not paid. They are like a liability of a firm which is not paid yet. Hence at the closing of the year it will be shown on the liability side of balance sheet.

Prepaid expenses are those expenses which are paid in advance. These expenses are not due but they are paid before. They are like asset of firm. Hence they will be shown on the asset side of the balance sheet.