Question

Q.21 Difference between Outstanding and Prepaid Expenditure ?​

Answer 1

Answer:

Prepaid expenses are expenses that you have paid for and not yet received the benefit. Outstanding expenses differ because you have received the benefit but you haven't paid yet.

Answer 2

Explanation:

Outstanding expenses are the expenses which have fallen due at the end of the accounting period but which has not been paid. Its a liability for the company and will be shown under the Current liabilities and provisions.

Prepaid expenses are the expenses which paid during the year before its due. The money is paid out but its not due at the end of the period. Its an asset and will be shown under current Assets in the Balance sheet