Is a prepaid expense an asset?
submitted by Jaws

solutely

Yes, you'd classify a prepaid expense as a current asset on the balance sheet. It shows payments made in advance for goods or services to be received in the future, such as insurance premiums or rent, so you could consider that an asset. Plus, you still have the money, so it's an asset.

Johns jeep

Prepaid expenses are considered assets because they are payments you've already made but haven't used up yet. Think of it like paying for a year's subscription in advance. You own that service until you start using it.

asamatteroffact

Prepaid expense is recorded as an asset. It is a current asset because it provides you some future benefit, sometime soon, like within one year.
It is gradually expensed over time as the benefit is collected, whatever benefit that is.

D Stracted

Yeah, prepaid expenses are assets because you've paid for something upfront, and you'll get the benefit later. Like prepaying for insurance means you own that coverage until it runs out.