Question

What is prepaid expenses? short answer please

Answer 1

Hello mate

Here is ur answer


Prepaid expenses are future expensesthat have been paid in advance. You can think of prepaid expenses ascosts that have been paid but have not yet been used up or have not yet expired. The amount of prepaid expenses that have not yet expired are reported on a company's balance sheet as an asset.


Hope it may helps you

Answer 2

Answer:

A prepaid expense is a type of asset on the balance sheet that results from a business making advanced payments for goods or services to be received in the future. Prepaid expenses are initially recorded as assets, but their value is expensed over time onto the income statement.