Respuesta :
Cash paid for an expense in one fiscal period that is not used until a later period is called a prepaid expense.
A prepaid expense is an fee that has been paid for earlier but no longer yet incurred. In enterprise, a prepaid cost is recorded as an asset at the stability sheet that outcomes from a business making superior payments for goods or offerings to be obtained inside the future.
Prepaid expenses are future prices which are paid earlier, which include hire or coverage. at the balance sheet, prepaid costs are first recorded as an asset. as the benefits of the assets are found out over the years, the quantity is then recorded as an cost.
The maximum commonplace examples of pay as you go prices encompass rent; device paid for before use, Salaries, Taxes, application bills, hobby expenses, etc.
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