prepaid expense 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 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 nsurance paid in advance would be treated in the Balance sheet as _________________. Non current asset Current Assets Intangible sheet Deferred expense 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 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 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) 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 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 Expenses Paid in advance are called ________. Prepaid Expense O/s Expense Asset Liability Time is Up! Time's up
