Prepaid expenses Flashcards by Madi Claire Cocking | Brainscape

Q

Prepaid expense

A

A current asset that has been paid in advance in the period but is yet to be used/incurred.

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Q

Examples of prepaid expenses

A

Prepaid rent
Prepaid office supplies
Prepaid insurance

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Q

Example of prepaid insurance in the general journal

A

Insurance = debit

Prepaid insurance = credit

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