- This topic has 1 reply, 2 voices, and was last updated 3 years ago by John Moffat.
- You must be logged in to reply to this topic.
Instant Poll - Read and post comments:
Specially for OpenTuition students: 20% off BPP Books for ACCA & CIMA exams – Get your BPP Discount Code >>
Why is a Prepayment considered an Asset yet it is a form of an expense that we pay in advance? I am kind of confused on this point.
A prepayment is when you have paid this year for an expense of next year. You have paid too much and so the amount overpaid is an asset.
Have you watched my free lectures? The lectures are a complete free course for Paper FA and cover everything needed to be able to pass the exam well.