Why prepaid expenses are considered as Current assets? Post category:Accountancy Reading time:1 mins read SOLUTION They are treated as Current assets because if the expenditure for such expenses had not been incurred, cash would have to be spent in the near future. Please Share This Share this content Opens in a new window X Opens in a new window Facebook Opens in a new window Pinterest Opens in a new window LinkedIn Opens in a new window Viber Opens in a new window VK Opens in a new window Reddit Opens in a new window Tumblr Opens in a new window Viadeo Opens in a new window WhatsApp Read more articles Previous PostWhy inventory is excluded from liquid assets? Next PostWhy prepaid expenses are not considered as liquid assets? You Might Also Like Alpha Ltd. issued 20,000 Equity Shares of Rs. 10 each at par payable: On application Rs. 2 per share; on allotment Rs. 3 per share; on first call Rs. 3 per share; on second and final call Rs. 2 per share. Mr. Gupta was allotted 100 shares. Pass necessary Journal entry relating to the forfeiture of shares in each of the following alternative cases: July 14, 2022 For each of the following transactions, calculate the resulting Cash Flow and state the nature of Cash Flow, i.e., whether it is Operating, Investing or Financing: (a) Acquired machinery for Rs. 2,50,000 paying 20% by cheque and executing a bond for the balance payable. (b) Paid Rs. 2,50,000 to acquire shares in Informa Tech Ltd. and received a dividend of Rs. 50,000 after acquisition. (c) Sold machinery of original cost of Rs. 2,00,000 with an accumulated depreciation of Rs. 1,60,000 for Rs. 60,000. August 18, 2022 From the following information, calculation Cash Flow from Operating Activities and Investing Activities: August 18, 2022 Leave a Reply Cancel replyYou must be logged in to post a comment.
Alpha Ltd. issued 20,000 Equity Shares of Rs. 10 each at par payable: On application Rs. 2 per share; on allotment Rs. 3 per share; on first call Rs. 3 per share; on second and final call Rs. 2 per share. Mr. Gupta was allotted 100 shares. Pass necessary Journal entry relating to the forfeiture of shares in each of the following alternative cases: July 14, 2022
For each of the following transactions, calculate the resulting Cash Flow and state the nature of Cash Flow, i.e., whether it is Operating, Investing or Financing: (a) Acquired machinery for Rs. 2,50,000 paying 20% by cheque and executing a bond for the balance payable. (b) Paid Rs. 2,50,000 to acquire shares in Informa Tech Ltd. and received a dividend of Rs. 50,000 after acquisition. (c) Sold machinery of original cost of Rs. 2,00,000 with an accumulated depreciation of Rs. 1,60,000 for Rs. 60,000. August 18, 2022
From the following information, calculation Cash Flow from Operating Activities and Investing Activities: August 18, 2022