1. Money

Your suggestion is on its way!

An email with a link to:


was emailed to:

Thanks for sharing About.com with others!

Most Emailed Articles

How To Fill Out Form W-4

Investing Lesson 3
Analyzing a Balance Sheet - Part 9
 More of this Feature
• Go Back to Part 1

• Part 29: Microsoft's Bal. Sheet
• Part 30: Analyzing MSFT
• Part 31: Sturm Ru. Bal.  Sheet
• Part 31: Analyzing Sturm Ruger
• Part 32: Wendy's Bal. Sheet
• Part 33: Analyzing Wendy's

• Lesson 3 Quiz

 Join the Discussion
"My employer gives me the option of having money taken out of my paycheck and putting it in an investment.  Is this a good idea?"
 Related Resources
• Investing Lesson 1
• Investing Lesson 2
• Investing Lesson 3
• More Investing Lessons
Sign up for our free Newsletter
 Subscribe to the Newsletter

Prepaid Expenses

In the course of every day operations, businesses will have to pay for goods or services before they actually receive the product.  If a department store moved into your neighborhood mall, most likely they would sign a rent agreement and be required to pay for twelve months' rent in advance.  If the monthly rent was $1,000 and the business prepaid for an entire year, they would put $12,000 on the balance sheet under Prepaid Expenses ($1,000 monthly rent x 12 months = $12,000).  Each month, they would deduct 1/12 from the prepaid expenses until the end of the year, at which point, the amount would be $0.

Next page > What are Prepaid Expenses? >  << back 78, 9, 10, 11, 12, 13 more >>


©2016 About.com. All rights reserved.