Learning Goal: I’m working on a accounting discussion question and need the explanation and answer to help me learn.
I would like you to explain to me why prepaid expense accounts are used? If rent, supplies, insurance or any other cost is prepaid, why don’t we just record the amount paid as an expense rather than as an asset?
That is the question that i need help on if you can answerer it. The only requirement is that it needs to be 130 words and thats all should not be that hard