Are prepaid expenses classified as liabilities on the balance sheet?

Or are they just assets that represent prepayments of future expenses?

Are prepaid expenses classified as liabilities on the balance sheet?

Or are they just assets that represent prepayments of future expenses?
Prepayments are part of current assets in the balance sheet because they are monies that you paid ahead of time.

Are prepaid expenses classified as liabilities on the balance sheet?

NO.


Or are they just assets that represent prepayments of future expenses?

Correct. They would be classified as current assets.