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what is pripaid expences nd difference bteween pripaid and
advance
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Answer / h.r. sreepada bhagi
Certain expenses are paid in an accounting period prior to
which the expense actually relates & these are called
Prepaid Expenses. For example, payment towards Annual
Maintenance Contract (AMC) paid during the middle of a year
for 1 year. The portion which relates to the next year is
prepaid expense.
Where as advance may be for anything like advance for supply
of goods, assets, services, etc, including expenses. Both
are coming under Current Assets, Loans & Advances in the
Balance Sheet.
In short, all prepaid expenses are advances, but all
advances need not be pre-paid expenses.
| Is This Answer Correct ? | 33 Yes | 3 No |
Answer / thasleem ali
prepaid expenses are the expense which paid in advance for the upcoming expenses also
eg.rent paid,electricity and water paid
Advance will be treated as expense when it pay, and it will become income when it get refund.
eg.salary advance,short term loan etc
advance coming under loans and advance
Prepaid expense comes under expense
| Is This Answer Correct ? | 2 Yes | 7 No |
Answer / mahender nath goswami
the prepaid exp. are those which are being exp. ain advance
and we get the benefits from that in the future , the
advance and prepaid exp. are same there is no difference
between both of them
| Is This Answer Correct ? | 3 Yes | 12 No |
Answer / sachin
prepaid expences is a expence which made for feature payment of expences .there is no difference between perpaid or advance.....
| Is This Answer Correct ? | 4 Yes | 16 No |
Answer / vikram yadav
prepaid expences are those ,witch paid in advance . there
is no differenc between prepaid and advance
| Is This Answer Correct ? | 5 Yes | 18 No |
Answer / kamal rangra
Any payments we are making in advance are the Pre-paid
expences.
Ex:- Rent in advance, Policy premium, etc.
Therefore, there is no difference between Prepaid Expences
and payment made in advance.
| Is This Answer Correct ? | 1 Yes | 16 No |
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