prepaid expense - Vista Academy

Welcome to your prepaid expense

Prepaid Insurance is an example of __________.

Increase in asset & decrease in owner's liability

Increase in liability & decrease in owner's liability

Decrease in liability & owner's liability

Increase in asset & owner's liability

None

If the insurance Rs.premium paid is Rs.1,000 and prepaid insurance is Rs.300, the amount of Insurance premium shown in profit and loss account will be _____________.

Rs 1300

Rs 700

Rs 1000

Rs. 300

None

nsurance paid in advance would be treated in the Balance sheet as _________________.

Non current asset

Current Assets

Intangible sheet

Deferred expense

None

A prepayment of insurance premium will appear in the Balance Sheet and in the Insurance Account respectively as.

A liability and a debit balance

An asset and a debit balance

An asset and a credit balance

None of the above

None

If prepaid rent appears in trial balance, while preparing the final accounts it will be shown in.

Profit & Loss A/c and asset side of balance sheet

Profit & Loss A/c and liability side of balance sheet

Asset side of balance sheet

Liability side of balance sheet

None

A club paid subscription fees of Rs. 1,400, out of which Rs. 200 is prepaid. In such case _________________.

P & L A/c is debited with Rs.1,400

P & L A/c is debited with Rs. 1,200

Rs. 200 is shown as current asset

Both (B) and (C)

None

Rent prepaid a/c appearing in the trial balance is ___________.

shown on the liability side of balance sheet

shown on the assets side of the balance sheet

shown on debit side of profit and loss A/c

credited to profit and loss A/c

None

Amount of prepaid expense is _______ from particular expense.

Added

Deducted

Depreciated

None

Prepaid expenses is shown under ___________ side of balance side.

Asset

Liability

Debit

Credit

None

Expenses Paid in advance are called ________.

Prepaid Expense

O/s Expense

Asset

Liability

None