Accountancy, asked by shrishti4373, 3 months ago

what are prepaid expenses and outstanding expenses?​

Answers

Answered by XxFashionableLadkaxX
110

Answer:

Prepaid expenses are the expenses that we paid already and still not received the benefit while outstanding expense is the receiving of the benefit already yet not paid for the received benefit.

Answered by TheMessy
33

αηswer

  • 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.
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