Prepaid expenses are shown on the asset side of the Balance Sheet. (State True or False)
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Hello!
Prepaid expense is shown on the Assets side of the business because it is an assets for the business .
Prepaid expense is shown on the Assets side of the business because it is an assets for the business .
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The statement- Prepaid expenses are shown on the asset side of the Balance Sheet is true.
* It is considered to be a current asset till the time it is being used up.
* It is because it provides several benefits to the company in due course of time.
* Once the amount expires, it gets reduced and this amount gets recorded as an expense.
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