Question

prepaid expenses are usually deducted from respective account why ?

Answer 1

Every account is prepared for the current period that is only for the one year...

Prepaid expenses refers that expenses which are paid in advance.

It means if the person give advance Amt to the business than this prepaid Amt will be deducted from the current year particular expenses..

Advanced Amt must be deducted from the current year amt. Bcx it is related to next year..

Answer 2

$\huge\bold\underline{\boxed{heya!! mate}}$

every account is prepared for the current period that is only for the one year..

prepaid expenses refer that expenses which are prepared in advance.

it , means if the person given advance amt to the business than this prepaid amt will be deducted from the current year particular expenses..