Why prepaid expenses are considered as Current assets? Post category:Accountancy Reading time:1 mins read SOLUTION They are treated as Current assets because if the expenditure for such expenses had not been incurred, cash would have to be spent in the near future. Please Share This Share this content Opens in a new window X Opens in a new window Facebook Opens in a new window Pinterest Opens in a new window LinkedIn Opens in a new window Viber Opens in a new window VK Opens in a new window Reddit Opens in a new window Tumblr Opens in a new window Viadeo Opens in a new window WhatsApp Read more articles Previous PostWhy inventory is excluded from liquid assets? Next PostWhy prepaid expenses are not considered as liquid assets? You Might Also Like What is the number of major heads of the Assets side of a Company’s Balance Sheet? September 30, 2022 What will be the current ratio of a company whose Net Working Capital is Zero? (C.B.S.E. Sample Paper. 2020) October 3, 2022 Padam and Virender were partners in a firm with no partnership deed. Their drawings during the year ended 31st March, 2015 amounted to Rs. 5,00,000 and Rs. 2,00,000 respectively. Virender was of the opinion that the firm should drawings @ 6% p.a. However, Padam disagreed to it. Padam convinced Virender that interest cannot be charged on drawings. What argument must have been put forward by Padam that convinced Virender? September 26, 2022 Leave a Reply Cancel replyYou must be logged in to post a comment.
What is the number of major heads of the Assets side of a Company’s Balance Sheet? September 30, 2022
What will be the current ratio of a company whose Net Working Capital is Zero? (C.B.S.E. Sample Paper. 2020) October 3, 2022
Padam and Virender were partners in a firm with no partnership deed. Their drawings during the year ended 31st March, 2015 amounted to Rs. 5,00,000 and Rs. 2,00,000 respectively. Virender was of the opinion that the firm should drawings @ 6% p.a. However, Padam disagreed to it. Padam convinced Virender that interest cannot be charged on drawings. What argument must have been put forward by Padam that convinced Virender? September 26, 2022