Prepaid Interest
Prepaid interest is interest paid before it’s due, often at the beginning of a loan term. It’s initially recorded as an asset and expensed over the loan period. This ensures interest is recognised gradually, matching the periods benefited and maintaining accuracy in both the income statement and balance sheet.
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Prepaid Income
Also known as unearned income, prepaid income is money received before delivering goods or services. It’s recorded as a liability…
Prepaid Expense
Prepaid expenses are advance payments for goods or services to be received in future periods. Common examples include prepaid rent…
Post Closing Balance Sheet
A post-closing balance sheet reflects the company’s financial position after all temporary accounts (revenues, expenses, dividends) are closed. It shows…
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