Are prepaid expenses non current assets?

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Are all prepaid expenses considered current assets? Is there any chance that a prepaid expenses balance is a non current asset?

1 Answer

score 0 · Answer 1 · 2012-12-02T19:16:45+00:00

No, in most cases the prepaid expenses are current assets because they are expected to be realized in the following year. Of course, this is the most common thing but if you have prepaid the rent for the following 5 years, 1 year will be current asset and four years will be non current asset so it depends.