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    vkcadenhead's Avatar
    vkcadenhead Posts: 6, Reputation: 1
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    #1

    Sep 30, 2007, 11:41 AM
    Prepaid expenses
    Are prepaid expenses classified as liabilities on the balance sheet?

    Or are they just assets that represent prepayments of future expenses?
    rubygarcia's Avatar
    rubygarcia Posts: 6, Reputation: 2
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    #2

    Sep 30, 2007, 05:49 PM
    Quote Originally Posted by vkcadenhead
    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.
    CaptainForest's Avatar
    CaptainForest Posts: 3,645, Reputation: 393
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    #3

    Oct 1, 2007, 10:59 PM
    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.
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