Are prepaid expenses assets or liabilities?

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Fleagle 0 Comments

I am trying to do a statement of financial position. Do you know if prepaid expenses are included in the assets or in the liabilities section?

score 0 · Answer 1 · 2012-12-02T16:36:03+00:00

Prepaid expenses are assets and not liabilities. Accrued expenses on the other hand (or accruals) are liabilities.