Difference between revisions of "Account for Prepaid Expenses"
(importing article from wikihow) |
m (Text replacement - "[[Category:M" to "[[Category: M") |
||
| Line 1: | Line 1: | ||
When running a business, it is very common for multiple expenses - rent and insurance, for example - to be paid for in advance. These expenses that are paid for in advance are known as pre-paid expenses. Knowing how to account for pre-paid expenses involves firstly an understanding of some key accounting principles, followed by the recording of a few simple journal entries. | When running a business, it is very common for multiple expenses - rent and insurance, for example - to be paid for in advance. These expenses that are paid for in advance are known as pre-paid expenses. Knowing how to account for pre-paid expenses involves firstly an understanding of some key accounting principles, followed by the recording of a few simple journal entries. | ||
| − | [[Category:Managing Your Money]] | + | [[Category: Managing Your Money]] |
== Steps == | == Steps == | ||
===Understanding Pre-Paid Expenses=== | ===Understanding Pre-Paid Expenses=== | ||
