Prepaid expenses are shown as an asset due to ........

Principles of Accounting & Financial Management Concepts of Accounting

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Prepaid expenses are shown as an asset due to:

Money measurement concept

Business entity concept

Going concern concept

Matching concept

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Explanation:

Prepaid expenses are future expenses that are paid in advance, such as rent or insurance. On the balance sheet, prepaid expenses are first recorded as an asset. As the benefits of the assets are realized over time, the amount is then recorded as an expense.