1. Prepaid Expenses:
These are those expenses, the payment of which has made by company in advance but the benefit or actual services has not yet received by the company that's why it is current asset of company for example prepaid rent.
Accrued Expenses:
These are those expenses the benefit of which has already received by company but payment has not yet made example is employees salaries which are accrued on last date of month and paid later.
Accounts Payable:
When company purchased goods from vendors on credit and payment is due in later time period this transaction creates the Accounts Payable till the actual payment is made to the vendors.
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