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What is the difference between prepaid expenses and outstanding expenses?
Prepaid expenses are expenses that you have paid for and not yet received the benefit. Outstanding expenses differ because you have received the benefit but you haven’t paid yet.
Is Outstanding same as prepaid?
1. What is the Difference Between Prepaid Expense and an Outstanding Expense? Outstanding expenses are shown on the liability side of the balance sheet. Outstanding expenses are added to the particular expenses in the current year.
What is accrued expenses and accrued income?
Accrued expenses are expenses that are incurred in one accounting period but won’t be paid until another. Accrued revenues are revenues earned in one accounting period but not received until another.
What is the difference between prepaid and advance?
As nouns the difference between prepayment and advance is that prepayment is a payment in advance while advance is a forward move; improvement or progression.
What do you mean by outstanding expenses?
The expenses which are incurred in the current year, but not paid partly or fully during the current accounting year, are termed as outstanding expenses.
What are outstanding expenses?
Outstanding expenses are those expenses which have been incurred and consumed during an accounting period and are due to be paid. Examples include outstanding salary, outstanding rent, etc.
What is the difference between outstanding and accrual?
While both these types of expenses have been incurred, the difference arises in when the payment is due. An accrued expense indicates that an expense has been incurred but is NOT YET DUE for payment. An outstanding expense indicates that an expense has been incurred and is PAST DUE for payment.
What is another name of outstanding expenses?
Outstanding expenses are those expenses which have been incurred during the current accounting period and are due to be paid, however, the payment is not made. Such an item is to be treated as a payable for the business. The other name for outstanding expenses is “accrued expenses”.